Foreign Investments Surge as Industrial and Office Assets Dominate the Market

Mumbai, 19 September 2024: A new report from Colliers reveals that India has secured the third position globally for cross-border capital targeting land and development sites. The Asia Pacific region continues to show its economic strength, with major players such as Singapore, Hong Kong, Japan, and China leading the charge in investment flows during the first half of 2024.

Foreign investments accounted for an impressive 73% of total capital inflows into India’s real estate sector in H1 2024, underscoring a robust confidence from global investors. The industrial and warehousing sectors, along with office assets, were particularly attractive, representing nearly three-quarters of all investments.

Investment activity in India’s industrial assets surged significantly, showing a fivefold increase compared to the same period last year. This growth is driven by heightened demand from third-party logistics (3PL) and e-commerce companies, as well as enhancements in manufacturing capabilities across vital industrial corridors.

As per experts, the trend indicates that 70% of foreign inflows in India’s real estate market were directed towards industrial and warehousing properties in the first half of 2024. This reflects a shift towards higher-quality Grade A assets, further boosted by evolving supply-chain models.

Institutional interest in Indian real estate remained strong, with inflows reaching USD 3.5 billion. Notably, while the majority of these investments targeted ready assets, the ongoing development of infrastructure in India continues to present significant opportunities in developmental projects.

Looking ahead, experts suggest that strong domestic demand, healthy GDP growth, and potential monetary easing in the coming quarters will sustain investment momentum. The data shows a notable trend, with foreign inflows expected to dominate institutional investments, despite North America and EMEA leading in funding.

The Asia Pacific region, as highlighted in the report, is becoming a hotbed for diverse investment opportunities, spanning traditional sectors such as residential and commercial real estate, as well as emerging fields like data centers and cold storage. With improving economic fundamentals, the outlook for real estate investment in the region remains optimistic.