India Ranks 5th in Asia-Pacific Real Estate Investments in 2024
New Delhi [India], August 3: India has emerged as a strong player in the Asia-Pacific (APAC) real estate market, securing the 5th spot in cross-border investments, according to a recent report by Knight Frank. The country captured 9% of the total investment volume in the first half of 2024.
Among the top countries attracting investments, Australia led with 36% of the total investment flow, followed by Japan with 23%. Singapore and Greater China secured the third and fourth places with 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 2024. The office sector led 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%.
Shishir Baijal, Chairman and Managing Director of Knight Frank India, commented, “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.”
The report highlighted that cross-border capital flows are reshaping the commercial real estate landscape across APAC as investors seek new opportunities. It also anticipated that 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 projected to see a 129% rise in cross-border investments in H2 2024.
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 normalise 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.”
Doubts Revealed
Asia-Pacific -: The Asia-Pacific region includes countries in Asia and the Pacific Ocean, like India, China, Japan, Australia, and many others.
Real Estate Investments -: Real estate investments involve putting money into properties like buildings and land to earn profits.
Cross-border -: Cross-border means involving two or more countries. So, cross-border investments are when people or companies from one country invest in another country.
Investment Volume -: Investment volume is the total amount of money invested in something, like real estate, over a certain period.
Private Equity Investors -: Private equity investors are people or companies that invest money in private companies or properties, not listed on the stock market.
USD 3 billion -: USD 3 billion means 3 billion US dollars, which is a lot of money. One billion is 1,000 million.
Office Sector -: The office sector refers to buildings and spaces used for businesses and companies to work in.
Knight Frank -: Knight Frank is a global real estate consultancy company that provides advice and services related to property investments.
Shishir Baijal -: Shishir Baijal is a person who works at Knight Frank and is an expert in real estate.
Christine Li -: Christine Li is another expert at Knight Frank who knows a lot about real estate in the Asia-Pacific region.