A new report from Colliers has revealed that India ranks third globally for cross-border capital targeting land and development sites. The report highlights that foreign investments accounted for an impressive 73% of total investment inflows during the first half of 2024.

The Asia Pacific region is a significant player in global capital, with four of the top ten sources—including Singapore, Hong Kong, Japan, and China—identified in the report. Japan and China emerged as leading destinations for standing assets, while Australia also featured in the top ten.

Investment Trends in India

In India, investments in industrial and warehousing assets, along with office properties, comprised nearly three-quarters of total investments in the same period. Notably, investments in industrial assets surged fivefold compared to the previous year, driven by rising demand from third-party logistics (3PL) and e-commerce sectors.

Piyush Gupta, Managing Director of Capital Markets & Investment Services at Colliers India, noted, “Foreign investment in India’s industrial and warehousing sector has been gaining significant traction. In H1 2024, nearly 70% of total foreign inflows were directed towards these assets. The growing appeal of India reinforces long-term confidence in the sector.”

Strong Performance of Ready Assets

During the first half of 2024, ready assets remained a focal point, constituting 70% of total investments, with USD 3.5 billion in inflows. Despite the emphasis on established properties, India’s rapid growth and infrastructure developments continue to present numerous opportunities in developmental assets.

Vimal Nadar, Senior Director and Head of Research at Colliers India, stated, “Backed by robust domestic demand and healthy GDP growth, investments in Indian real estate will remain steady. With a 73% share of foreign inflows in H1 2024, we expect these trends to continue, even as North America and EMEA lead in foreign investment.”

Future Outlook

The report anticipates that the APAC region will maintain its status as a hub of economic activity, offering diverse investment opportunities across traditional sectors such as residential, commercial, and industrial logistics, as well as emerging sectors like data centers and cold storage. Chris Pilgrim, Managing Director of Global Capital Markets for Asia Pacific at Colliers, noted, “Improving fundamentals are set to create new investment opportunities, with global rate cuts signaling positivity for real estate markets.”

As India solidifies its position as a prime destination for cross-border capital, the ongoing investments in its real estate sector are poised to shape the landscape for years to come.

Also Read: Housing Prices Rise Across Top Indian Cities, Reports CREDAI-Colliers-Liases Foras

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