India Emerges as a Key Player in APAC's Cross-Border Real Estate Market
India has secured 9% of the Asia-Pacific region's cross-border real estate investments in H1 2024, with a total investment volume of USD 3 billion.
ApacReal EstateIndiaInvestmentsCommercial PropertiesReal Estate NewsAug 12, 2024
The overall cross-border investments in the APAC region amounted to USD 11.5 billion during the same period.
The Indian real estate sector demonstrates a strong attraction, particularly in commercial properties. The office sector leads the charge, accounting for 36% of total investments from abroad. This trend highlights the critical demand for office spaces, particularly as companies adapt to hybrid work models and seek modern facilities. Following the office sector is the industrial real estate niche, which has attracted 30% of the investment share. This interest can be attributed to India's growing manufacturing capabilities and logistical networks.
In contrast, the residential sector received 15% of investment, while retail drew in 10%. This distribution suggests that while residential and retail markets are still active, commercial properties are where the bulk of foreign interest lies.
The increase in cross-border capital is reshaping the commercial real estate landscape throughout APAC. Experts anticipate that future monetary policies, including potential rate cuts, will likely boost this trend even more. Such changes may lead to an increase of over one-third in cross-border investments for the latter half of 2024 compared to the same period last year.
When comparing major markets within APAC, Australia is expected to attract the most foreign investment in the second half of 2024, with an impressive predicted increase of 129% from the previous year. The full-year forecast also predicts that Australia, Japan, and Singapore will remain the top three destinations for cross-border capital in the APAC region, with shares of 36%, 23%, and 11%, respectively.
Another vital aspect to consider is the evolving regulatory environment in India, which has made strides in simplifying processes and enhancing transparency in real estate transactions. Initiatives like the Real Estate (Regulation and Development) Act (RERA) and Goods and Services Tax (GST) have positively impacted investor confidence.
In summary, India's position in the APAC cross-border real estate investment landscape is strengthening, with foreign investors showing keen interest in both commercial and industrial sectors. As economic conditions evolve and regulatory frameworks improve, India may well continue this positive trajectory, ensuring it remains a coveted destination for global capital.
About Knight Frank Knight Frank is a global real estate consultancy that provides expert advice on commercial and residential property. With a presence in over 500 offices across 60 countries, the company has a deep understanding of local markets and a proven track record of delivering results-driven solutions for clients.
Frequently Asked Questions
What is the total investment volume in the APAC region for H1 2024?
The total investment volume in the APAC region for H1 2024 is USD 11.5 billion.
Which sector leads in terms of foreign investment in India?
The office sector leads in terms of foreign investment in India, accounting for 36% of total investments from abroad.
What is the predicted increase in cross-border investments for the latter half of 2024?
The predicted increase in cross-border investments for the latter half of 2024 is over one-third compared to the same period last year.
Which country is expected to attract the most foreign investment in the second half of 2024?
Australia is expected to attract the most foreign investment in the second half of 2024, with an impressive predicted increase of 129% from the previous year.
What initiatives have positively impacted investor confidence in India?
Initiatives like the Real Estate (Regulation and Development) Act (RERA) and Goods and Services Tax (GST) have positively impacted investor confidence in India.
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