Due to rising economic and inflationary pressures, rankings for two major metros of the country - Mumbai and New Delhi slid down to 15th and 12th position respectively on the list of foremost real estate investment markets, a survey by consultancy firm PwC said.
Last year, however, PwC had ranked Mumbai at the third and New Delhi at the fifth place.
According to the report titled 'Emerging trends in Real Estate Asia Pacific 2012', the vacancy rates in Mumbai are likely to remain stable through the close of 2011 and into 2012 and the absorption will again be positive next year, but rental values will remain questionable as economic and inflationary issues continue to linger.
"In New Delhi, inflation continued to spike costs, and it may not be economically feasible to build there. On going funding problems do provide investment opportunities for private equity investors," the report said.
PwC has ranked Bangalore as the 10th most favoured investment destination, a similar rating like last year. "Bangalore's organic, growth driven market and ability to buck mega trends has helped it retain its credentials as a stable play and maintain its position on the list," the report said.
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