APAC investors invested $1.3 bn in Indian real estate between Jan-Sep 2024

Indian real estate received institutional investments of $4.7 billion between January and September 2024

APAC investors (investors from the Asia-Pacific region) invested $1.33 billion in India’s real estate sector between January and September 2024, according to Colliers. The share of APAC countries in overall investments in India’s real estate stood at 28 per cent.

 

Overall, Indian real estate received institutional investments of $4.7 billion during the same period. Foreign investments accounted for about 69 per cent of this amount, with investors from Singapore and the United States contributing equally at 21 per cent each.

 

Further, as per a survey conducted by Colliers, 69 per cent of APAC survey respondents intend to allocate more than 30 per cent of their total global assets under management (AUM) to real estate in the next five years.

   

Moreover, according to the survey, the industrial and office sectors are expected to remain APAC investors’ top choices in 2025. Piyush Gupta, managing director, capital markets and investment services at Colliers India, stated that the office sector’s growth is driven by absorption fuelled by global capability centres (GCCs) and domestic demand. “Equity capital in Indian real estate is now more diversified, with an increasing share of domestic capital,” he added.

 

Speaking about the residential segment, Vimal Nadar, senior director and head of research, Colliers India, said, “Residential real estate, meanwhile, is likely to witness increased investor participation in joint venture platforms and redevelopment projects in Tier-I cities."

 

Additionally, 10 per cent of overall APAC investments were directed toward the industrial and logistics segments. Chris Pilgrim, Colliers’ managing director of global capital markets, Asia Pacific, stated that investors are specifically targeting assets like data centres, last-mile logistics, and cold storage, with interest centred in markets like Japan, Australia, and South Korea.

 

“There’s also a lot of demand for alternatives as investors look to diversify the way they invest in real estate. But the biggest challenge, not just in Asia Pacific but globally, is that there’s still a lack of investable-grade assets in many of these sectors, whether it’s senior living or life sciences. We don’t expect supply to ramp up in 2025. But as future strategies, they have really strong potential," Pilgrim added.