According to Colliers’ Asia Pacific Global Capital Flows report, India has emerged as a top-5 global destination for cross-border capital in the Asia Pacific region, specifically for land and development sites. In the first quarter of 2024, foreign investors accounted for 55% of real estate inflows, with 73% of these investments directed towards ready assets. In 2023, foreign investors contributed $3.6 billion to the Indian real estate market, representing 67% of the total share. Alongside India, China, Singapore, and Australia were also ranked among the top five for cross-border capital investment in the first quarter of 2024.
Piyush Gupta, Managing Director of Capital Markets & Investment Services at Colliers India, noted that foreign investors’ sustained interest in ready assets is clear, with 73% of investment inflows in the first quarter of 2024. He highlighted the continued preference for high-quality office assets, both developmental and ready-to-move, with a strong emphasis on sustainability.
Institutional investors in India are primarily drawn 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 are partnering with local developers in office, residential, and industrial segments. Abhishek Kapoor, CEO of Puravankara Group, stated that India’s consistent economic growth, robust demand fundamentals, and positive business outlook have bolstered global institutional investor confidence in exploring diverse investment opportunities. Institutional investors like PAG Credit and Markets, Ivanhoe Cambridge, Logos, Alta Capital, and CPPIB have invested across segments such as residential, warehousing, office, and alternative assets.
Vimal Nadar, Senior Director & Head of Research at Colliers India, remarked that 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 expected to continue this trend. With the GDP on track to surpass $5 trillion, India offers significant real estate investment opportunities supported by advancements in infrastructure, digital connectivity, and favorable regulatory frameworks.
Chris Pilgrim, Colliers’ Managing Director of Global Capital Markets in Asia Pacific, stated that the APAC region continues to show strong growth with stable forecasts, driving the strength of the land and development market.
