India: A Leading Growth Hub in APAC Real Estate Amid Resilient Economic Trends
Click to start listening
Synopsis
New Delhi's real estate investments in the Asia Pacific rose 12% to $155.9 billion in 2024, with India showcasing an 88% surge in the latter half of the year. The report by Colliers highlights significant growth in various sectors, particularly in office properties, and a positive outlook for future investments.
Key Takeaways
- Real estate investments in APAC grew by 12% to $155.9 billion.
- India showed an 88% increase in H2 investments at $3.0 billion.
- Office assets attracted 47% of total investments.
- Mumbai accounted for nearly 50% of H2 investments.
- Foreign investments made up 57% of total inflows in H2.
New Delhi, March 18 (NationPress) Real estate investments in the Asia Pacific region surged by 12 percent year-on-year, reaching $155.9 billion in 2024. India demonstrated remarkable growth, with the second half (H2) showing an 88 percent annual increase in investments, totaling $3.0 billion, according to a report released on Tuesday.
Among the nine markets in the APAC area, India, South Korea, Taiwan, and Australia experienced notable investment growth, each exceeding 30 percent year-on-year during this period, as detailed in a report by Colliers.
In India, office properties attracted the majority of investments, holding a 47 percent share, followed by industrial and logistics sectors, which accounted for 27 percent.
Mumbai captured nearly half of the investments in H2 2024, predominantly driven by the acquisition of office properties.
The consistent growth in investment volumes reinforces India's status as a favored destination for real estate investments from both domestic and international sources.
During H2 2024, foreign investments represented 57 percent of total inflows, whereas domestic investments, totaling $1.3 billion, saw a commendable 8 percent growth.
“Institutional investments in Indian real estate have displayed exceptional growth, with 2024 marking a 22 percent rise in capital inflows, reaching $6.5 billion. This trend is anticipated to persist into 2025, fueled by positive economic indicators and investor confidence,” stated Badal Yagnik, Chief Executive Officer of Colliers India.
Additionally, the expected continuation of easing monetary policies, including further reductions in the repo rate, is likely to enhance liquidity and stimulate transactional activity across real estate sectors in 2025.
With diverse investment avenues and proactive government strategies, robust capital deployment across both core and non-core assets is anticipated throughout 2025, Yagnik noted.
Looking forward, while global investors will continue to diversify their real estate portfolios, domestic investors are expected to delve deeper into segments offering higher yields, such as office and industrial & warehousing, said Vimal Nadar, Senior Director and Head of Research at Colliers India.
In summary, real estate investment volumes in the Asia Pacific region are projected to remain strong in 2025, as indicated in the report.
