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Four of the top five global destinations for land and development site investments in the first quarter of 2024 were in Asia Pacific, including India, according to a new report from Colliers.
The report, Asia Pacific Global Capital Flows May 2024, listed India, China, Singapore, and Australia as the top five destinations globally for cross-border capital investment in land/development sites in the first quarter of 2024. The report by the diversified professional services and investment management company threw light on the key trends within the real estate sector. In India, the report said that institutional investors preferred completed and pre-leased assets because they offer immediate, steady returns, low risk, regulatory compliance, and easier exits. Persistent economic growth, strong demand fundamentals and an optimistic business outlook in India relative to its global peers have enhanced global institutional investor confidence in exploring multiple avenues for investments in India, as per the report. It further highlighted that the investors are partnering with local developers and investors, in developmental assets spanning across office, residential and industrial segments. It underscored the economic reforms due to which the institutional investments across various asset classes in the real estate sector have seen promising inflows. Persistent economic growth, strong demand fundamentals and optimistic business outlook in India relative to its global peers have enhanced global institutional investor confidence in exploring multiple avenues for investments in India. "The past two years have witnessed significant investments in land, particularly for residential projects, with prominent real estate developers keen to strategically acquire large contiguous land parcels. Institutional investments in the residential segment, meanwhile have also witnessed a 20 per cent YoY rise during 2023, at USD 0.8 Billion. With robust residential sales momentum across cities, this trend is expected to continue, making it an opportune moment to capitalize on greenfield development opportunities, especially in residential real estate," said Vimal Nadar, Senior Director and Head of Research, at Colliers India. Highlighting the growth prospects of real estate in Indian cities, the report anticipates the extension of the sector beyond the key six cities, backed by infrastructure advancements, increased digital penetration and supportive regulatory framework in these cities, offering an array of opportunities for the investors. "Foreign investors continue to exhibit confidence in India's real estate sector, infusing USD 3.6 Billion during 2023, driving 67 per cent of the total inflows. The preference towards developmental as well as ready-to-move quality office assets will continue, with a visible emphasis on sustainability. The Capital in Indian Real Estate is getting more diversified to sectors such as Residential, Logistics, Alternatives, and Credit," said Piyush Gupta, Managing Director of capital Markets and Investment Services at Colliers India. (ANI)
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