India Ranks Third Globally for Land and Development Site Investments
Mumbai: India's real estate sector attracted a staggering $3.5 billion from foreign institutional investors during the first half of 2024, positioning the country as the third most preferred global destination for land and development site investments, following China and Singapore. This insight comes from a report released by Colliers, a leading investment management firm.
In the first quarter of 2024, foreign investments in the real estate market reached $995.1 million, while the second quarter saw a significant surge to $2.5 billion. Notably, foreign investment accounted for 73% of the total investments in India’s real estate market, with cross-border investments exceeding $1.5 billion. The Asia-Pacific region was a key contributor, injecting over $1.2 billion, according to the ‘Global Capital Flows Report.’
A considerable portion of the investments—nearly 70%—focused on ready assets. The report highlights that India’s rapid growth and ongoing infrastructure development are likely to create further opportunities in the developmental assets sector in the coming years.
The industrial and warehousing sectors were particularly active, with investments in industrial assets soaring nearly fivefold compared to the same period last year. “Investor interest is driven by rising demand from third-party logistics and e-commerce players, as well as the strengthening of manufacturing capabilities across key industrial corridors,” stated Piyush Gupta, Managing Director of Capital Markets & Investment Services at Colliers India.
Recent reports indicate that several new funds, including Mubadala, Mitsubishi Fudosan, PAG Credit & Markets, Cadillac Fairview, Korea Investment Corp, and PNB Malaysia, are actively exploring the Indian real estate market, either expanding their investments or establishing new collaborations.
The luxury real estate segment is also witnessing robust growth, with a projected compound annual growth rate (CAGR) of over 5% from 2023 to 2028. Non-resident Indians (NRIs) are increasingly investing in this space, contributing $13.1 billion to the market in the previous year. By 2025, NRIs are expected to account for 20% of India’s total real estate investments.
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