Real Estate Mumbai

India Ranks 5th in Cross-Border Real Estate Investments in Asia Pacific Region

2024-08-03 · GeoSquare

A recent report by Knight Frank has revealed that India ranks 5th in cross-border real estate investments in the Asia Pacific region, attracting 9% of the total volume of investment within the region in the first half of 2024. The total cross-border investments in APAC during this period reached $11.5 billion, with India receiving $3 billion from global private equity investors.

In terms of investment in Indian real estate, the office sector accounted for 36% of the total global capital allocation, reflecting the strong appeal of commercial real estate assets. The industrial sector followed closely with 30% of the investment share, while the residential sector received 15%, and retail accounted for 10%.

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.\n\nCross-border capital flows are having a significant impact on the commercial real estate market in the Asia-Pacific region, driving the quest for new investment opportunities. It is projected that the expected rate cuts could lead to a more than one-third surge in cross-border investments in the area during the second half of 2024, as opposed to the corresponding period in 2023.

Delhi-NCR currently stands as the fifth most expensive office space rental market in the Asia Pacific region, while Mumbai's prime office rent was reported at ₹302 per sq ft per month, placing it as the eighth most expensive commercial market in the APAC region. Bengaluru, the IT hub of India, has been ranked 18th among the most affordable prime office markets in the Asia-Pacific (APAC) region.