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.
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