Implementation of the goods and services tax and the last year's note-ban have not only created liquidity issues for the real estate sector but also impacted investment and development prospects of the cities, thereby pulling down their rankings, a report has said.


As per a survey conducted jointly by the Urban Land Institute and consultancy PwC, the initial effects of demonetisation and GST reforms reflected in the investment and development prospects of the country's cities which have moved out from the premier positions of last year.


The report, titled 'Emerging trends in real estate-- Asia Pacific 2018', is based on the opinions of over 600 realty professionals including investors.


"Investments, specifically into affordable housing in the country, continues to be strategic in nature and offers massive scale of opportunity, a factor that makes it especially popular for funds deploying large capital," PwC India leader, real estate tax practices, Abhishek Goenka said.


While Mumbai ranks 12th in the list of preferred investment destination for 2018--massively down from the second rank last year, and it stands at the 8th slot in terms of development prospects. -- PTI