Real estate investments worth USD 2.87 billion poured into Indian cities of Mumbai, Bengaluru, Pune, Delhi–NCR, Chennai and Hyderabad in the one year period ending June 2017, recording an almost 100 percent jump in investments, says a new report by Cushman & Wakefield.

These markets were able to attract capital based on strong economic drivers, acceleration in reforms, high yields and rapidly modernising business base. Of the total real estate investment received by the various cities of India, the largest share of over 55 percent came in from North America, while domestic and regional sources saw a decline in share of capital invested in India, it says.

Funds from Europe, which had not made its presence in the previous year, were seen contributing approximately 14 percent. Mumbai has recorded real estate investments worth USD 1,749 million and is ranked 81st position in the global survey ranking cities by their success at attracting capital. The Indian financial capital took the top spot amongst gateways cities with a 194 percent increase from the previous year. Only Pune over stripped Mumbai in terms of investment growth at 285 percent, says the report titled Winning in Growth Cities that surveyed over 400 global locations.

The report also placed Bengaluru at 161 spot with the total real estate investment volume of USD 461 million.

“Current economic drivers are biased towards developed markets, but Indian cities are performing ahead of expectations and are clearly offering superior medium to long-term growth potential in real estate. While established markets of Mumbai, Bengaluru and Delhi NCR have seen the larger share of capital investments, cities such as Chennai, Hyderabad and Pune are also key destinations due to their inherent strengths as crucibles for multi-sector manufacturing activities for automobiles, engineering goods, white goods, pharmaceutical products, etc,” says Anshul Jain, country head and managing director, India Cushman & Wakefield.

New York (USD 51 billion) remained the top city in the survey followed by Los Angeles (USD 39 billion) and San Francisco (USD 32 billion). In Asia, Hong Kong (global rank of 8) received the highest volume of investment at USD 18.4 billion.

The global property investment market saw volumes rise 4 percent year-on-year to USD 1.5 trillion in a one year period ending June 2017. The rise compared to the previous 12 months reflects improving sentiment in 2017. The APAC region remains a very viable investment target for global capital. The region’s diverse development backdrop and deepening property markets will allow investors to turn their attention to secondary and tertiary markets and alternative property and set the stage for next core strategies, the report said.

Global Ranking as per volume of investment received