India Jumps to 3rd in Global Real Estate Capital

India has surged to the third position on the global list of cross-border capital destinations for land and development sites. The report highlights that India attracted $3.5 billion in investments during the first half of 2024, reflecting robust institutional investor interest in the country’s real estate sector.

The influx of capital underscores a sustained interest in Indian real estate, with a notable 70 percent of the investments during January-June 2024 directed towards ready assets. This trend signals strong confidence in India’s ongoing infrastructure development and rapid growth, which are expected to continue creating lucrative opportunities in developmental assets in the years to come.

The report, compiled by Colliers, reveals that the industrial and warehousing sectors have emerged as major beneficiaries of foreign investments. In the first half of 2024, nearly 70 percent of foreign inflows into India’s real estate sector were allocated to these areas. This surge in investment is attributed to the increasing demand from third-party logistics (3PL) and e-commerce sectors, alongside enhancements in manufacturing capabilities across India’s key industrial corridors.

Piyush Gupta, Managing Director of Capital Markets and Investment Services at Colliers India, noted that the rising demand for high-quality Grade A assets and evolving supply chain models are driving global investor interest. He emphasized that India’s appeal as a destination for industrial investments underscores long-term confidence in the sector.

The Asia Pacific region, which includes Singapore, Hong Kong, Japan, and China, also features prominently among the top global sources of cross-border capital for real estate in the first half of 2024.

Investments in India’s industrial assets, in particular, have experienced a fivefold increase compared to the same period last year. This trend, coupled with strong domestic demand, healthy GDP growth, and the anticipated easing of monetary policy, suggests that foreign inflows will continue to play a significant role in India’s real estate market.

Vimal Nadar, Senior Director and Head of Research at Colliers India, anticipates that foreign inflows, accounting for a substantial 73 percent of total investments during H1 2024, will remain a dominant force in the near-term.