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Investments in developmental assets set to surge as India marches towards USD 5 Trillion economy
Investments in developmental assets set to surge as India marches towards USD 5 Trillion economy

June 17, 2024

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Four of the top five global cross-border capital destinations for land and development site investments in the first quarter of 2024 were in Asia Pacific, according to a new report from Colliers. The report, Asia Pacific Global Capital Flows May 2024, listed China, Singapore, Australia and India within the top five destinations globally for cross-border capital investment in land/development sites in Q1 2024.

In India, the institutional investors are largely drawn to completed and pre-leased income-yielding assets due to their ability to provide immediate & steady returns, low risk profile, compliance assurance and lesser exit-related hassles. However, with majority of the large Grade A projects being already funded, investors are also forging partnerships with local developers and investors, in developmental assets spanning across office, residential and industrial segments. The inflow in developmental assets (mainly in the form of platform deals) includes investments in various phases of developmental activity including land acquisition and asset development, etc.

The inflow into developmental assets includes investments directed toward creating new assets from the ground up. These investments span various phases of development, including the formation of platforms, land acquisition, and construction.

Select transactions in developmental assets (in 2023–Q1 2024):

Over the last decade, institutional investments across various asset classes in real estate sector have seen promising inflows, bolstered by a wave of infrastructure investments and comprehensive economic reforms. Persistent economic growth, strong demand fundamentals and optimistic business outlook in India relative to its global peers, have enhanced global institutional investor confidence in exploring multiple avenues for investments in India. 

With the GDP set to cross USD 5 trillion soon, India offers burgeoning opportunities for real estate investment, both in ready assets and developmental sites. The real estate growth is likely to extend beyond the top 6 cities, covering multiple smaller cities across the country, backed by infrastructure advancements, increased digital penetration and supportive regulatory framework in these cities, offering an array of opportunities for the investors.

Select land deals (in 2023–Q1 2024):

Note: The above deals involve investments in acquiring land parcels only.

Get more insights in our research report here.


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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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