Indian real estate market among top in APAC region: Colliers
The country’s real estate sector attracted a massive US$ 23 billion foreign investment since 2018
- Nov 29, 2023,
- Updated Nov 29, 2023 5:02 PM IST
Buoyed by major foreign investments in the real estate sector over the last five years, India has emerged as one of the top growth in the APAC (Asia Pacific) region. Latest data from Canada-based diversified professional services and investment management company Colliers shows that the country’s real estate sector has been a preferred avenue for foreign investors since 2018.
According to Colliers’ Global Investor Outlook report, the country’s real estate sector has managed to attract $23.3 billion (Rs 193,000 crore) in foreign investments between 2018 and September, 2023. Among the segments, office space market in India led the sector with $11.4 billion worth of foreign investments. While, the residential segment attracted US$ 2.6 billion. Properties for mixed use got $2.9 billion from global investors, while the industrial and warehousing segment received $2.5 billion. Alternate assets like data centres, life sciences, senior housing, holiday homes, student housing got $2.3 billion during the period, followed by the retail segment ($1.6 billion).
The data points towards an upswing in the proportion of investors planning to boost real estate allocations. Almost 60 per cent of APAC investors expect strong regional economic growth to contribute positively to the real estate environment, it noted. In India, the investments were led by investors from countries like the USA and Canada, apart from investors from the APAC region.
“As more established markets start to stabilise, investors are growing more confident about extending their search for opportunities in growth markets. This is particularly apparent in India, which is expected to remain one of the fastest-growing major global economies, led by private consumption and capital formation. The opportunities to invest in India continue to spread across office, logistics, private credit, residential and data centres.”, said Piyush Gupta, Managing Director, Capital Markets & Investment Services at Colliers India.
As per Colliers’ analysis, while geopolitical outlook poses an overall downside risk to the investment market globally, “India continues to demonstrate resilience through its high growth trajectory”. Investments into India continue to grow annually and in 2023 it has witnessed a strong 27 per cent year-on-year growth so far (till end-September). “This is steered by long-term confidence in core asset classes and emerging avenues for diversification. From the lens of global and APAC investors, the Indian real estate market currently offers stable returns paired with attractive pricing, better valuations, and higher yields,”, it noted.
Also Read: Festive boost: Property registrations in Mumbai rose 37% YoY to 4,500 in October
Buoyed by major foreign investments in the real estate sector over the last five years, India has emerged as one of the top growth in the APAC (Asia Pacific) region. Latest data from Canada-based diversified professional services and investment management company Colliers shows that the country’s real estate sector has been a preferred avenue for foreign investors since 2018.
According to Colliers’ Global Investor Outlook report, the country’s real estate sector has managed to attract $23.3 billion (Rs 193,000 crore) in foreign investments between 2018 and September, 2023. Among the segments, office space market in India led the sector with $11.4 billion worth of foreign investments. While, the residential segment attracted US$ 2.6 billion. Properties for mixed use got $2.9 billion from global investors, while the industrial and warehousing segment received $2.5 billion. Alternate assets like data centres, life sciences, senior housing, holiday homes, student housing got $2.3 billion during the period, followed by the retail segment ($1.6 billion).
The data points towards an upswing in the proportion of investors planning to boost real estate allocations. Almost 60 per cent of APAC investors expect strong regional economic growth to contribute positively to the real estate environment, it noted. In India, the investments were led by investors from countries like the USA and Canada, apart from investors from the APAC region.
“As more established markets start to stabilise, investors are growing more confident about extending their search for opportunities in growth markets. This is particularly apparent in India, which is expected to remain one of the fastest-growing major global economies, led by private consumption and capital formation. The opportunities to invest in India continue to spread across office, logistics, private credit, residential and data centres.”, said Piyush Gupta, Managing Director, Capital Markets & Investment Services at Colliers India.
As per Colliers’ analysis, while geopolitical outlook poses an overall downside risk to the investment market globally, “India continues to demonstrate resilience through its high growth trajectory”. Investments into India continue to grow annually and in 2023 it has witnessed a strong 27 per cent year-on-year growth so far (till end-September). “This is steered by long-term confidence in core asset classes and emerging avenues for diversification. From the lens of global and APAC investors, the Indian real estate market currently offers stable returns paired with attractive pricing, better valuations, and higher yields,”, it noted.
Also Read: Festive boost: Property registrations in Mumbai rose 37% YoY to 4,500 in October