India emerges as a High-Potential Real Estate Hotspot in APAC

Real estate investments in the Asia Pacific region rose by 12 percent compared to the previous year, reaching $155.9 billion in 2024, as reported by Colliers in their latest publication – ‘Asia Pacific Investment Insights H2 2024’. This increase highlights the ongoing strength of the region's leading nine markets: Australia, Mainland China, Hong Kong, India, Japan, Singapore, South Korea, New Zealand, and Taiwan.

The report indicates that South Korea, Japan, and Mainland China comprised 59 percent of the total $83.2 billion in real estate investments for H2 2024. Additionally, India, South Korea, Taiwan, and Australia experienced notable investment growth, each achieving over a 30 percent increase year-on-year during this period.

The office and industrial & logistics sectors remained the primary areas of investment in H2 2024, accounting for around 60 percent of total investments. The retail and hospitality sectors also saw a recovery, with retail investments growing by 31 percent year-on-year to reach $15.0 billion in H2 2024. Both Australia and South Korea received over $3.0 billion in the retail sector, indicating renewed investor confidence in these asset classes.

Within the APAC region, India maintained robust momentum with a remarkable 88 percent increase in investments in H2 2024, amounting to $3.0 billion. Office properties attracted the majority of these investments, holding a 47 percent share, while industrial & logistics accounted for a 27 percent share. Mumbai became a focal point for investments in H2 2024, drawing nearly half of the total due to office asset acquisitions.

"Institutional investments in Indian real estate have shown remarkable growth, with 2024 witnessing a 22 per cent rise in capital inflows at USD 6.5 billion. This momentum is expected to continuity in easing of monetary policy including further reduction in repo rate, is expected to enhance liquidity and drive transactional activity across real estate segments in 2025. Diverse investment opportunities along with proactive government policies are likely to support robust capital deployment across core and non-core assets throughout 2025." said Badal Yagnik, Chief Executive Officer, Colliers India.