According to the survey, titled 'Emerging trends in real estate in Asia Pacific 2014', Chennai has for the first time emerged in the top 25 real estate destinations list in the Asia Pacific region.
"Cities like Bangalore, Delhi and Mumbai have been in the top 25 list as preferred destinations. However, for the first time, investors have chosen Chennai as one of the destinations for investment.
"This indicates that there has been a slight shift in investor interest from conventional assets in prime markets to newer and stable assets in niche markets," PwC India Executive Director Gautam Mehra told reporters here today.
While Bangalore ranked 20th in the list, Delhi stood at 21st, Chennai 22nd and Mumbai 23rd.
Bangalore and Mumbai have slipped from their positions compared to 2013 rankings where they stood at 19th and 20th position, while Delhi maintained its ranking at 21st position.
The report is based on the opinions of over 250 globally-renowned real estate professionals, including investors, developers, property company representatives, lenders, brokers and consultants.
"These low ratings are attributed to the ongoing economic problems, an uncertain currency outlook following a mid-year plunge in the value of the rupee, and an investment environment widely perceived to be unfriendly to international investors. However, interest in domestic markets remain strong," he said.
With national elections looming and reports on the ground suggesting that the tide may be turning in receptivity to foreign investment, many foreign funds are waiting on the sidelines to see what happens, Mehra said.
"The general slippage of domestic cities in the rankings, coupled with the retention in top 25 list, tells the story - on the one hand, there is the negative impact of the combination of market, currency, regulatory and political risk which continues to result in a general sense of nervousness and the tendency of foreign investors to stay on the sidelines, while on the other, the undoubted potential continues to keep interest levels going," he said.
Mehra further noted, "in the backdrop of the outlook emanating from the report, a more conducive and transparent environment will set the ball rolling for attracting greater levels of investment, both foreign and domestic."