Mumbai is at seventh position in Asia Pacific as a preferred destination for cross-border investments in real estate sector, according to property consultant CBRE India.
The consultant on Friday released its '2023 Asia Pacific Investor Intentions Survey'.
"Mumbai is ranked 7th among the 10 APAC cities and emerged as a preferred destination for cross-border investment in the region," it said.
Mumbai ranks ahead of Shanghai (ranked 8), Hanoi (ranked 9) and Seoul (ranked 10) on the list.
No other Indian city had featured in the list in the last two years.
Tokyo topped the chart for the fourth consecutive year as the target market for cross-border investment, followed by Singapore. Vietnam continues to benefit from its status as a 'China-plus One' destination.
The survey, polled more than 530 Asia Pacific-based investors across a range of investor types from developers, private investors, and REITs to institutions such as insurance companies, pension funds and sovereign wealth funds, which asked respondents a range of questions regarding their buying appetite and preferred real estate strategies, sectors and markets for 2023.
Mumbai and Shanghai continue to be focus for long-term investors looking to add to their real estate exposure in the world's two biggest emerging economies, 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," Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa of CBRE, said.
Indian economy is likely to remain a key driver of global growth in 2023, he said.
"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," Magazine said.
As per the CBRE survey, the majority (93 per cent) of institutional investors expect allocations to real estate to increase or remain stable in 2023.
"Investors cite the fear of a recession, interest rate hikes and a mismatch in buyer and seller expectations as their greatest challenges this year," CBRE said.
Investors prefer high quality assets in prime locations across all sectors, as these assets have strong tenant demand drivers and resilient cash flow.
Only 5 per cent of investors say they will invest in alternative sectors, with healthcare-related properties, including life sciences and medical offices, the most preferred, overtaking data centres for the first time.
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