Report says India ‘3rd global cross-border capital destination for land, development sites
By Anjali Sharma
NEW YORK –A new report issued on Thursday said that India secured 3rd place in the list of global cross-border capital destinations for land and development sites in the first half of 2024.
It added that investments in Indian real estate sector will remain steady.
With $3.5 billion of inflows in the January-June period, institutional investor interest in Indian real estate has remained firm.
The report said 70 per cent of investments during H1 2024 were focused on ready assets, India’s fast-paced growth and infrastructure development will continue to offer numerous opportunities in developmental assets over the coming years.
According to the report by Colliers the foreign investment in India’s industrial and warehousing sector has been gaining significant traction in recent times.
In H1 2024, 70 per cent of the total foreign inflows in India’s real estate sector were directed towards industrial and warehousing assets.
Piyush Gupta, Managing Director, Capital Markets and Investment Services at Colliers India said “Investor affinity is being driven by rising demand from third-party logistics (3PL) and e-commerce players and strengthening of manufacturing capabilities across key industrial corridors of the country”.
He added the growing appeal of India as a key destination for industrial investments reinforces long-term confidence in the sector.
The Asia Pacific region was home to four of the top 10 global cross-border capital sources in the first half of 2024 – Singapore, Hong Kong, Japan and China.
In India, investments in industrial and warehousing and office assets remained strong in the first half of the year. Investments in Industrial assets especially were 5 times, compared to same period last year.
The report stressed that the rising demand for superior quality Grade A assets and evolving supply-chain models, global investor confidence in the sector is improving significantly.
It said that backed by robust domestic demand, healthy GDP growth and likely easing of monetary policy in the next few quarters, investments in Indian real estate sector will remain steady.
Vimal Nadar, Senior Director and Head of Research, Colliers India said “Evident from a 73 per cent share during H1 2024, foreign inflows will continue to dominate institutional investments in the near-term.”
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