Colliers firm says foreign investors infused $4B in India Real Estate yearly

Anjali Sharma

GG News Bureau
NEW YORK, 15th March. Colliers consulting firm in a report on Thursday said the foreign investors have infused USD 4 billion annually in the Indian Real Estate business, in past 5 years.

The report said that the investment is riding on the country’s economic resilience, coupled with favorable investment climate and rapid urbanization and has enhanced its appeal as a promising investment destination for global funds.

“These investments were not confined to traditional avenues but extended to alternative asset classes, bolstering the robust domestic growth in office, residential, and industrial segments. Going forward, investor appetite is likely to remain strong with newer funds looking to enter the Indian market,” Colliers said.

“While strong preference continues for income-yielding office assets, residential, industrial and alternatives are likely to witness renewed interest,” it added.

Colliers noted that with the IMF’s projected GDP growth rate of 5.7 per cent in 2024, India remains one of the fastest-growing economies globally, and one of the most preferred emerging countries within the Asia-Pacific region, offering attractive pricing, better valuations, and higher yields.

US and Canada remain top source countries for capital, leading APAC countries including Singapore, Hong Kong, South Korea and Japan are also gradually eyeing India’s growing real estate market.

It added that in 2023, Investment inflows from the APAC region surged 57 per cent on year to USD 1.8 billion, of which 70 per cent were in office assets.

The report added that apart from office assets, APAC countries have also shown interest in residential, industrial, and warehousing assets.

During 2023, the inflows almost doubled since 2019, signaling a significant uptick in investor interest and confidence in India’s real estate sector, it said.

Chris Pilgrim, Colliers Managing Director of Global Capital Markets, APAC on the development said “2024 is anticipated to be a more dynamic year for both the Asia Pacific real estate markets as well as capital in the region remaining the dominant investor in global real estate.”

“The ability to act quickly, dig deeply into markets and sectors to identify value, and forge productive partnerships will be key to making the most of the region’s diversity and increased opportunity,” he added.

The report highlighted that US and Canada remain top source countries for capital, leading APAC countries such as Singapore, Hong Kong, South Korea, and Japan are also gradually eyeing India’s growing real estate market.

In 2023, Investment inflows from the APAC region surged 57 per cent on year to USD 1.8 billion, of which 70 per cent were in office assets.

APAC countries have shown interest in residential, industrial, and warehousing assets apart from office assets.

In 2023, the inflows doubled since 2019, signaling a significant uptick in investor interest and confidence in India’s real estate sector, the report concluded.