According to the report, ‘Top Business Districts in India to Invest in’,
Business districts of NCR and Bangalore, the largest office markets in
the country, lag behind as investor returns range from 8%-11% and
10%-12% respectively.

Central Mumbai and suburban business
district, west grabbed the top two spots in the overall investment
return. Factors that led to this includes availability of talent,
conducive business environment,
international air connectivity, presence of prominent stock and
commodity exchanges along with headquarters of several banks form the
backbone of the financial industry in Mumbai, mentioned the report.

“Real estate investment in India has garnered superior returns in
comparison to other asset classes over the previous five years. However,
in most cases investment decisions in real estate are based on gut feel and tips which result in poor returns,” says Shishir Baijal, Country Head and MD, Knight Frank India.

According to the report Mumbai, NCR, Bangalore, Chennai, Hyderabad and
Pune is the most conducive cities in the country with investor return
during 2013-2017 across these six cities expected to range between
8%-19% pa.

“At 19% pa, Mumbai’s Central Mumbai business
district will yield the best investment return in the country. Business
districts of NCR and Bangalore, despite being the largest office markets
in the country will lag behind other cities in terms of investor
return,” says Samantak Das, Chief Economist, Director-Research &
Advisory Services, Knight Frank India.