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Foreign investors infuse an average of ~USD 4 Bn investments per year in Indian real estate
Foreign investors infuse an average of ~USD 4 Bn investments per year in Indian real estate

March 13, 2024

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Colliers’ 2024 Investor Insights – Country Spotlight Series provides real estate investors and owners with unique insights into the year ahead and a deep understanding of key markets across the Asia Pacific region.

Global diversified professional services and investment management company Colliers (NASDAQ, TSX: CIGI) has recently launched its latest insights into the dynamic year ahead forecast for the Asia Pacific real estate industry.

Colliers’ 2024 Investor Insights – Country Spotlight Series provides real estate investors and owners with unique insights into the year ahead and a deep understanding of key markets across the Asia Pacific region.

With IMF’s projected GDP growth rate of 5.7% in 2024, India remains one of the fastest-growing economies globally, and one of the most preferred emerging countries within the Asia-Pacific (APAC) region, offering attractive pricing, better valuations, and higher yields. 

Foreign inflows too witnessed a rebound in 2023 registering a 20% YoY rise at USD 3.6 Billion. These investments were not confined to traditional avenues but extended to alternative asset classes, bolstering the robust domestic growth in office, residential, and industrial segments. 

Going forward, investor appetite is likely to remain strong with newer funds looking to enter the Indian market. While strong preference continues for income-yielding office assets, residential, industrial and alternatives are likely to witness renewed interest.

Average annual institutional inflows into India 2019-23 (USD Bn)

 

 Source: Colliers 

 

Sector wise average foreign inflows into India 2019-23 (USD Bn)

 

India’s real estate sector sees rising interest from the APAC countries

While countries such as the US and Canada remain top source countries for capital, leading APAC countries such as Singapore, Hong Kong, South Korea, and Japan are also gradually eyeing India's growing real estate market. In 2023, Investment inflows from the APAC region surged 57% YoY to USD 1.8 billion, of which 70% were in office assets. However, apart from office assets, APAC countries have also shown interest in residential, industrial, and warehousing assets. During 2023, the inflows almost doubled since 2019, signaling a significant uptick in investor interest and confidence in India's real estate sector.

Investment inflows from APAC region in Indian real estate (2019-2023) - 

 Source: Colliers 

Looking ahead to 2024, investors are expected to increase their activity in India's real estate market, driven by a robust economic performance, positive business environment and robust demand across core and alternative sectors. Anticipation of heightened activity in a way reflects certainty around the policy environment, narrowing gap between buyers and sellers and investor intent to deploy more capital across real estate asset classes. 

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Colliers India
Sukanya Dasgupta, Head Marketing and Communications - sukanya.dasgupta@colliers.com

Colliers (NASDAQ, TSX: CIGI) is a leading diversified professional services and investment management company. With operations in 66 countries, our 18,000 enterprising professionals work collaboratively to provide expert real estate and investment advice to clients. For more than 28 years, our experienced leadership with significant inside ownership has delivered compound annual investment returns of approximately 20% for shareholders. With annual revenues of $4.5 billion and $98 billion of assets under management, Colliers maximizes the potential of property and real assets to accelerate the success of our clients, our investors, and our people. Learn more at corporate.colliers.com, Twitter @Colliers or LinkedIn.

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