India Emerges as a Formidable Player in APAC Real Estate Investments
India secures 5th spot in cross-border investments in APAC, capturing 9% of total investment volume in H1 2024
Apac Real EstateCross Border InvestmentsIndia Real EstateKnight FrankPrivate Equity InvestorsReal Estate NewsAug 03, 2024
Among the top countries attracting investments, Australia captured 36% of the total investment flow, followed by Japan, which attracted 23% of total investments. Singapore and Greater China remained in third and fourth place, securing 11% and 10% of the total investments, respectively.
India received USD 3 billion from global private equity investors out of the total cross-border investments in APAC during the year 2024. The office sector leads with 36% of the total global capital allocation in Indian real estate, followed by the industrial sector at 30%, residential at 15%, and retail at 10%.
Reacting to the development, Shishir Baijal, Chairman and Managing Director of Knight Frank India, said, “The expected turnaround of global economies in the second half of the year is likely to encourage more foreign private equity players to take advantage of the country’s robust domestic macros. This influx of investment would boost the performance of Indian real estate and maintain the growth of industry assets.”
Highlighting the investment sentiment in the region, the report noted that cross-border capital flows are reshaping the commercial real estate landscape across APAC, as investors seek new opportunities.
The report further anticipated that the expected rate cuts will drive a more than one-third increase in cross-border investments in the region during the second half of 2024 compared to the same period in 2023. Australia is poised to be the biggest beneficiary, with projections indicating a 129% rise in cross-border investments in H2 2024.
According to the report, Australia, Japan, and Singapore will dominate the region, attracting 36%, 23%, and 11% of the cross-border capital, respectively, for the entire year.
Christine Li, Head of Research at Knight Frank Asia-Pacific and author of the report, said, “Historical analyses of previous crises, including the Global Financial Crisis, the Chinese economic slowdown, and the Covid-19 pandemic, demonstrate that transaction volumes in the region typically normalize within 30 months.”
“Currently, we are in the 24th month of the high-interest-rate-induced downturn, suggesting the second half offers a prime investment window for undervalued assets. Early indicators of recovery are already observed in Australia and South Korea,” Li added.
The report is a testament to India's growing presence in the APAC real estate market, and the expected influx of foreign investments is likely to boost the sector's growth.
About Knight Frank
Knight Frank is a global real estate consultancy providing an integrated prime residential and commercial offering. With over 500 offices across 60 countries, the group's reputation for uncompromising professionalism in everything it does is earned by serving the property needs of its clients worldwide.
Frequently Asked Questions
What is India's ranking in APAC real estate investments?
India has secured the 5th spot in cross-border investments in APAC, capturing 9% of the total investment volume in H1 2024.
Which sector leads in terms of global capital allocation in Indian real estate?
The office sector leads with 36% of the total global capital allocation in Indian real estate.
What is the expected increase in cross-border investments in APAC during the second half of 2024?
The expected rate cuts will drive a more than one-third increase in cross-border investments in the region during the second half of 2024 compared to the same period in 2023.
Which countries will dominate the APAC region in terms of cross-border capital flows?
Australia, Japan, and Singapore will dominate the region, attracting 36%, 23%, and 11% of the cross-border capital, respectively, for the entire year.
What is the typical recovery period for transaction volumes in the APAC region after a crisis?
Historical analyses of previous crises demonstrate that transaction volumes in the region typically normalize within 30 months.
Related News Articles
Tamannaah Bhatia's Expensive Real Estate Deals in Mumbai
Bollywood actor Tamannaah Bhatia has made headlines with her recent real estate deals in Mumbai. She has leased a commercial property in Juhu and mortgaged three residential units in Andheri West.
Nemetschek Group Expands into India with Ambitious Plans for Real Estate and Infrastructure
India's booming real estate and infrastructure market attracts Nemetschek Group, a leading software solutions provider for the construction sector
Boosting India's Housing Market: Budget 2024 Expectations from Real Estate Sector
The real estate sector is anticipating measures to revitalize the affordable housing segment, with expectations of incentives and support measures in Budget 2024.
Real Estate Value in Ayodhya Skyrockets 15 Times Over 3 Years
Real estate rates in Ayodhya have seen a remarkable surge, increasing 15 times over just three years. This exponential growth is attributed to the cultural and religious significance of the city, along with government initiatives and infrastructure develo
Kalpesh Mehta, Trump’s Indian Real Estate Partner, Attends Inauguration
Kalpesh Mehta, the founder of Tribeca Developers and the licensed Indian partner for Trump Towers projects, attended Donald Trump's inauguration as the next President. Mehta is closely associated with the Trump family, having studied at Wharton with Donal
No Direct Link Between Stock Market and Real Estate Demand in Mumbai
Rustomjee plans to enter the South Mumbai real estate market. According to Chandresh Mehta, Executive Director at Keystone Realtors, there is currently no direct correlation between the stock market and the demand for real estate in Mumbai.