India Ranks 5th in APAC in Cross-Border Real Estate Investments
India receives USD 3 billion in cross-border investments in the first half of 2024
According to a report by Knight Frank, India has emerged as one of the top destinations for cross-border real estate investments in the Asia Pacific (APAC) region. The report highlights that India attracted 9% of the total volume of investment within the region in the first half of 2024, ranking 5th overall. This indicates the growing appeal of the Indian real estate market among global investors.
Office Sector Takes the Lead in Investment Allocation
The report further reveals that out of the total investment inflow in Indian real estate, the office sector accounted for the highest share of 36%. This shows the strong demand for commercial real estate assets in the country. Following closely behind was the industrial sector with 30% of the investment share, indicating the attractiveness of the manufacturing and logistics segments. The residential sector received 15% of the total global capital allocation, and the retail sector accounted for a share of 10%.
Cross-Border Capital Flows Reshaping APAC Real Estate Landscape
The increasing cross-border capital flows are having a significant impact on the commercial real estate landscape in the APAC region. These investments are driving the search for new opportunities and fueling the growth of the real estate sector. The report suggests that the anticipated rate cuts in the near future could further spur investments in the region. It is projected that cross-border investments will witness a significant increase of one-third in the second half of 2024, compared to the same period last year.
Australia Expected to Attract Highest Volume of Investments
Among the key gateway markets in the APAC region, Australia is projected to receive the highest volume of cross-border investments in the second half of 2024. The report estimates a remarkable 129% increase in investments compared to the previous year, highlighting Australia’s appeal as an attractive investment destination. Looking at the full year 2024, Australia, Japan, and Singapore are expected to be the top three destinations for cross-border capital, with estimated shares of 36%, 23%, and 11% respectively.
India’s rise to the 5th rank in cross-border real estate investments within the APAC region is a testament to the country’s growth potential and investor confidence in its real estate market. The increasing investments in the office and industrial sectors indicate India’s emergence as a hub for commercial activities and manufacturing. As the country continues to attract global capital, there is optimism for the future growth and development of India’s real estate sector.
