According to Colliers ‘ Asia Pacific Global Capital Flows report, India has become a top-5 global destination for cross-border capital in the Asia Pacific region for land and development sites. In the first quarter of 2024, 55% of real estate inflows were from foreign investors, with 73% directed towards ready assets. In 2023, foreign investors contributed US$ 3.6 billion to the Indian real estate market, representing 67% of the total share. China, Singapore, and Australia also ranked in the top five for cross-border capital investment in the first quarter 2024. “Foreign investors’ sustained interest in ready assets is evident from the 73% investment inflows in the first quarter of 2024. There is a persisting preference for high-quality office assets, both developmental and ready-to-move, with a notable focus on sustainability,” said Managing Director of Capital Markets & Investment Services at Colliers India, Mr. Piyush Gupta.
Institutional investors in India are primarily attracted to completed and pre-leased income-yielding assets due to their immediate returns, low-risk profiles, compliance assurance, and fewer exit-related hassles. With most large Grade A projects already funded, investors partner with local developers in office, residential, and industrial segments. “India’s consistent economic growth, robust demand fundamentals, and positive business outlook have bolstered global institutional investor confidence in exploring diverse investment opportunities,” said the CEO of Puravankara Group, Mr. Abhishek Kapoor. Institutional investors like PAG Credit and Markets, Invanhoe Cambridge, Logos, Alta Capital, and CPPIB have invested across segments such as residential, warehousing, office, and alternative assets. “Economic stability in India presents a promising opportunity for real estate development projects. Over the past two years, there has been a notable increase in land investments, especially for residential projects. With strong residential sales, this trend is expected to persist,” said Senior Director & Head of Research at Colliers India, Vimal Nadar. With the GDP on track to surpass US$ 5 trillion, India offers significant real estate investment opportunities supported by advancements in infrastructure, digital connectivity, and favourable regulatory frameworks. “APAC continues to show strong growth with stable forecasts, driving the strength of the land and development market. Investor confidence is returning, and strong demand fundamentals are driving significant interest in India,” said Colliers’ Managing Director of Global Capital Markets in Asia Pacific, Mr. Chris Pilgrim.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
