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India ranks 3rd in global cross-border capital destinations
Real Estate

India ranks 3rd in global cross-border capital destinations

In the first half of 2024, India secured the third position among global cross-border capital destinations for land and development sites, as detailed in Colliers’ Global Capital Flows Report | H1 2024.

The report highlighted that the Asia Pacific region is a major source of global cross-border capital, with Singapore, Hong Kong, Japan, and China listed among the top ten destinations. Japan and China were also recognized as top five destinations globally for capital targeting standing assets. Australia represented the APAC region in the top ten list, according to Colliers.

"Foreign investment in India's industrial and warehousing sector has seen significant growth recently. In H1 2024, nearly 70% of the total foreign inflows into India’s real estate sector were directed towards industrial and warehousing assets. This investor interest is being driven by rising demand from third-party logistics (3PL) and e-commerce players, as well as the strengthening of manufacturing capabilities across key industrial corridors. The growing appeal of India as a destination for industrial investments reinforces long-term confidence in the sector," stated Piyush Gupta, Managing Director, Capital Markets & Investment Services at Colliers India.

Recent notable deals involving foreign funds include Daibiru Corporation, a subsidiary of the Japanese conglomerate Mitsui O.S.K. Lines, investing Rs 1,000 crore in an under-construction office complex in Gurgaon developed by DLF-Hines. Additionally, the Abu Dhabi Investment Authority (ADIA) and investment management firm KKR have invested Rs 12,864 crore in warehousing assets of Reliance Retail Ventures Limited (RRVL). Maple Tree also acquired 41 acres of land from Adarsh Developers for Rs 1,900 crore.

The office sector emerged as the primary target for investment activity in the APAC region during the first half of 2024, closely followed by the industrial sector. Investments in both industrial and warehousing assets, as well as office properties in India, demonstrated strong performance in this period, with investments in industrial assets surging fivefold compared to the previous year. This trend is attributed to increasing demand for high-quality Grade A assets and the transformation of supply chain models, boosting global investor confidence.

"Supported by robust domestic demand, healthy GDP growth, and anticipated easing of monetary policy in the upcoming quarters, investments in the Indian real estate sector are expected to remain stable. With foreign inflows capturing a 73% share in H1 2024, they will continue to dominate institutional investments in the near term. While North America and EMEA are likely to lead in foreign fund inflows, we can expect growing interest from investors in the broader APAC region," remarked Vimal Nadar, Senior Director and Head of Research at Colliers India.

With $3.5 billion in inflows during H1 2024, institutional investor interest in Indian real estate has remained strong. While 70% of investments were focused on ready assets, India’s rapid growth and infrastructure development will continue to present numerous opportunities for developmental holdings in the coming years.

"APAC is a hub of economic activity, offering diverse investment opportunities across traditional sectors such as residential, commercial, and industrial logistics, as well as emerging sectors like data centers and cold storage. Improving fundamentals are expected to create new investment opportunities in the near future, with global rate cuts signaling optimism for real estate markets," stated Chris Pilgrim, Colliers’ Managing Director of Global Capital Markets, Asia Pacific.

In the first half of 2024, India secured the third position among global cross-border capital destinations for land and development sites, as detailed in Colliers’ Global Capital Flows Report | H1 2024. The report highlighted that the Asia Pacific region is a major source of global cross-border capital, with Singapore, Hong Kong, Japan, and China listed among the top ten destinations. Japan and China were also recognized as top five destinations globally for capital targeting standing assets. Australia represented the APAC region in the top ten list, according to Colliers. Foreign investment in India's industrial and warehousing sector has seen significant growth recently. In H1 2024, nearly 70% of the total foreign inflows into India’s real estate sector were directed towards industrial and warehousing assets. This investor interest is being driven by rising demand from third-party logistics (3PL) and e-commerce players, as well as the strengthening of manufacturing capabilities across key industrial corridors. The growing appeal of India as a destination for industrial investments reinforces long-term confidence in the sector, stated Piyush Gupta, Managing Director, Capital Markets & Investment Services at Colliers India. Recent notable deals involving foreign funds include Daibiru Corporation, a subsidiary of the Japanese conglomerate Mitsui O.S.K. Lines, investing Rs 1,000 crore in an under-construction office complex in Gurgaon developed by DLF-Hines. Additionally, the Abu Dhabi Investment Authority (ADIA) and investment management firm KKR have invested Rs 12,864 crore in warehousing assets of Reliance Retail Ventures Limited (RRVL). Maple Tree also acquired 41 acres of land from Adarsh Developers for Rs 1,900 crore. The office sector emerged as the primary target for investment activity in the APAC region during the first half of 2024, closely followed by the industrial sector. Investments in both industrial and warehousing assets, as well as office properties in India, demonstrated strong performance in this period, with investments in industrial assets surging fivefold compared to the previous year. This trend is attributed to increasing demand for high-quality Grade A assets and the transformation of supply chain models, boosting global investor confidence. Supported by robust domestic demand, healthy GDP growth, and anticipated easing of monetary policy in the upcoming quarters, investments in the Indian real estate sector are expected to remain stable. With foreign inflows capturing a 73% share in H1 2024, they will continue to dominate institutional investments in the near term. While North America and EMEA are likely to lead in foreign fund inflows, we can expect growing interest from investors in the broader APAC region, remarked Vimal Nadar, Senior Director and Head of Research at Colliers India. With $3.5 billion in inflows during H1 2024, institutional investor interest in Indian real estate has remained strong. While 70% of investments were focused on ready assets, India’s rapid growth and infrastructure development will continue to present numerous opportunities for developmental holdings in the coming years. APAC is a hub of economic activity, offering diverse investment opportunities across traditional sectors such as residential, commercial, and industrial logistics, as well as emerging sectors like data centers and cold storage. Improving fundamentals are expected to create new investment opportunities in the near future, with global rate cuts signaling optimism for real estate markets, stated Chris Pilgrim, Colliers’ Managing Director of Global Capital Markets, Asia Pacific.

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