India wins 3rd position for Real estate development among Global Destinations

In H1 2024, the industrial and warehousing sector accounted for around 70% of all foreign investment inflows into the Indian real estate market.

According to a research by international property consultancy Colliers, India's real estate sector drew foreign investment inflows of about $3.5 billion in the first half of 2024, making it the third most sought worldwide destination for land and development sites.

The top two spots were filled by China and Singapore, respectively. 

In fact, the greater Asia Pacific area emerged as the category's market leader for the period under consideration, home to seven of the top ten names on the list.

The report's data indicates that during the first half of 2024, real estate investment inflows totaling $3.5 billion were made into India's real estate sector. 73% of all real estate investments in India came from outside investors, with over $1.5 billion in cross-border transactions.

The "Global Capital Flows Report" states that over $1.2 billion in inflows came from the APAC area.

The research included a perspective for the future, noting that while ready assets accounted for 70% of investments made in the first half of 2024, India's rapid infrastructure development and economic growth will continue to present a plethora of chances in developmental assets in the years to come.

In the first half of 2024, Singapore, Hong Kong, Japan, and China were included among the top 10 worldwide cross-border capital sources, encompassing the greater Asia Pacific area. With withdrawals of almost $32.5 billion from real estate investments at that time, the US topped the list.

Piyush Gupta, Managing Director, Capital Markets and Investment Services at Colliers India “Investor affinity is being driven by rising demand from 3PL and E-commerce players and strengthening of manufacturing capabilities across key industrial corridors of the country”.

Vimal Nadar, Senior Director and Head of Research, Colliers India “Backed by robust domestic demand, healthy GDP growth and likely easing of monetary policy in the next few quarters, investments in Indian real estate sector will remain steady. Evident from a 73% share during H1 2024, foreign inflows will continue to dominate institutional investments in the near-term”.