According to the Investor Intentions study, Mumbai is ranked 7th among the top 10 APAC cities

Mumbai, one of the top 10 cities in Asia-Pacific (APAC), is ranked seventh and has become a popular location for international investments in the area. The results of the 2023 Asia Pacific Investor Intentions Survey were released by CBRE, the top real estate consulting company in the world, on Friday.

Mumbai is ranked above Shanghai (ranked #8), Hanoi (ranked #9), and Seoul (ranked #10) on the list, per the study. In the previous two years, no other Indian city had appeared on the list.

Tokyo topped the list as the destination market for international investments for the fourth year in a row, followed by Singapore. Vietnam still reaps the rewards of being a “China-plus One” destination. Long-term investors wanting to increase their real estate exposure in the two largest rising economies in the world continue to concentrate on Shanghai (ranked #8) and Mumbai (ranked #7).

Almost one-third (31%) of investors will seek opportunistic strategies, distressed assets, and non-performing loans this year to take advantage of the current market conditions, according to a survey that included all asset classes.

Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE said, “Real estate sector in India has remained resilient throughout 2022. Despite the challenging times, businesses have looked at India as an attractive, resilient, and cost-effective investment destination. The Indian economy is likely to remain a key driver of global growth in 2023. Investment activity in real estate surged to an all-time high in 2022, with Mumbai, Delhi-NCR, cumulatively accounting for 56 per cent of the investments in 2022. We expect Capital flows likely to remain steady in 2023.”

Henry Chin, Global Head of Investor Thought Leadership & Head of Research, Asia Pacific, CBRE said, “Industrial and logistics continues to be the most preferred asset class for Asia Pacific investors, followed by office and residential. The survey finds that core investors still opt for offices as their top choice. Investors are showing much stronger interest in the residential sector, especially multifamily/built to rent. We expect yields to expand further across all asset classes in 2023.”

As per the survey, more than 60 per cent of investors expect to find discounts in retail and Grade A offices in 2023. Despite logistics being the most preferred asset class, only 11 per cent of the investors are willing to bid above the asking price this year, compared to 35 per cent in 2022.

Greg Hyland, Head of Capital Markets, Asia Pacific, CBRE, said, “Despite healthy fundraising levels, most investors are adopting a cautious approach as they look for signs of yield expansion and the interest rate tightening cycle to stabilize. We expect investment activity to accelerate in the year’s second half.”