In the first half of 2024, India stood out by securing the third position in the list of global cross-border capital destinations for land/development sites, according to Colliers’ Global Capital Flows Report | H1 2024.
The report mentioned that the Asia Pacific region was a significant source of global cross-border capital, with Singapore, Hong Kong, Japan, and China ranking among the top ten. Japan and China were among the top five destinations globally for global capital targeting standing assets. At the same time, Australia represented the APAC region in the top ten list, as mentioned by Colliers.
" Foreign investment in India's industrial & warehousing sector has recently gained significant traction. In H1 2024, nearly 70% of the total foreign inflows in India’s real estate sector were directed towards industrial & warehousing assets. Investor affinity is being driven by rising demand from 3PL & E-commerce players and the strengthening of manufacturing capabilities across key industrial corridors of the country. The growing appeal of India as a key destination for industrial investments reinforces long-term confidence in the sector," said Piyush Gupta, Managing Director, Capital Markets & Investment Services at Colliers India.
Some recent notable asset-level deals by foreign funds include Daibiru Corporation, a subsidiary of the Japanese business conglomerate Mitsui O.S.K. Lines, investing Rs 1,000 crore in an under-construction office complex in Gurgaon being developed by DLF-Hines. Additionally, Abu Dhabi Investment Authority (ADIA) and investment management company KKR have invested in Reliance Retail Ventures Limited (RRVL) warehousing assets in a transaction valued at Rs 12,864 crore. Maple Tree also acquired 41 acres of land from Adarsh Developers for Rs 1900 crore.
The office sector emerged as the prime target for investment activity in the APAC region during the first half of 2024, closely followed by the industrial sector. Notably, investments in industrial & warehousing and office assets in India demonstrated robust performance in the same period. Particularly, investments in industrial assets surged by fivefold compared to the corresponding period in the previous year. This trend can be attributed to the increasing demand for high-quality Grade A assets and the transformation of supply-chain models, which has significantly bolstered global investor confidence in the sector.
“Backed by robust domestic demand, healthy GDP growth and likely easing monetary policy in the next few quarters, investments in the Indian real estate sector will remain steady. Evident from a 73% share during H1 2024, foreign inflows will continue to dominate institutional investments in the near term. Although North America and EMEA will lead the foreign inflow of funds, we can witness increasing traction from investors in the wider APAC region," said Vimal Nadar, Senior Director and Head of Research at Colliers India.
With $ 3.5 billion in inflows in H1 2024, institutional investor interest in Indian real estate has remained firm. While 70% of investments during H1 2024 were focused on ready assets, India’s fast-paced growth and infrastructure development will continue to offer numerous opportunities for developmental holdings over the coming years.
“APAC is a powerhouse of economic activity, offering diverse investment opportunities across traditional sectors such as residential, commercial and industrial & logistics as well as growing specialised sectors like data centres and cold storage. Improving fundamentals are set to create new investment opportunities in the months ahead, with global rate cuts signalling positivity for real estate markets,” said Chris Pilgrim, Colliers’ Managing Director of Global Capital Markets, Asia Pacific.
The report mentioned that the Asia Pacific region was a significant source of global cross-border capital, with Singapore, Hong Kong, Japan, and China ranking among the top ten. Japan and China were among the top five destinations globally for global capital targeting standing assets. At the same time, Australia represented the APAC region in the top ten list, as mentioned by Colliers.
" Foreign investment in India's industrial & warehousing sector has recently gained significant traction. In H1 2024, nearly 70% of the total foreign inflows in India’s real estate sector were directed towards industrial & warehousing assets. Investor affinity is being driven by rising demand from 3PL & E-commerce players and the strengthening of manufacturing capabilities across key industrial corridors of the country. The growing appeal of India as a key destination for industrial investments reinforces long-term confidence in the sector," said Piyush Gupta, Managing Director, Capital Markets & Investment Services at Colliers India.
Some recent notable asset-level deals by foreign funds include Daibiru Corporation, a subsidiary of the Japanese business conglomerate Mitsui O.S.K. Lines, investing Rs 1,000 crore in an under-construction office complex in Gurgaon being developed by DLF-Hines. Additionally, Abu Dhabi Investment Authority (ADIA) and investment management company KKR have invested in Reliance Retail Ventures Limited (RRVL) warehousing assets in a transaction valued at Rs 12,864 crore. Maple Tree also acquired 41 acres of land from Adarsh Developers for Rs 1900 crore.
The office sector emerged as the prime target for investment activity in the APAC region during the first half of 2024, closely followed by the industrial sector. Notably, investments in industrial & warehousing and office assets in India demonstrated robust performance in the same period. Particularly, investments in industrial assets surged by fivefold compared to the corresponding period in the previous year. This trend can be attributed to the increasing demand for high-quality Grade A assets and the transformation of supply-chain models, which has significantly bolstered global investor confidence in the sector.
“Backed by robust domestic demand, healthy GDP growth and likely easing monetary policy in the next few quarters, investments in the Indian real estate sector will remain steady. Evident from a 73% share during H1 2024, foreign inflows will continue to dominate institutional investments in the near term. Although North America and EMEA will lead the foreign inflow of funds, we can witness increasing traction from investors in the wider APAC region," said Vimal Nadar, Senior Director and Head of Research at Colliers India.
With $ 3.5 billion in inflows in H1 2024, institutional investor interest in Indian real estate has remained firm. While 70% of investments during H1 2024 were focused on ready assets, India’s fast-paced growth and infrastructure development will continue to offer numerous opportunities for developmental holdings over the coming years.
“APAC is a powerhouse of economic activity, offering diverse investment opportunities across traditional sectors such as residential, commercial and industrial & logistics as well as growing specialised sectors like data centres and cold storage. Improving fundamentals are set to create new investment opportunities in the months ahead, with global rate cuts signalling positivity for real estate markets,” said Chris Pilgrim, Colliers’ Managing Director of Global Capital Markets, Asia Pacific.
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