Thu Sep 19 07:05:51 UTC 2024: ## India’s Real Estate Sector Attracts $3.5 Billion in Foreign Investment
**Mumbai, India -** India’s real estate market has seen a surge in foreign investment during the first half of 2024, attracting a total of $3.5 billion. This makes India the third most preferred global destination for land and development site investments, according to a report by Colliers.
Foreign investment accounted for a significant 73% of total real estate investments in India, with cross-border investments exceeding $1.5 billion. The Asia-Pacific (APAC) region alone contributed over $1.2 billion in inflows, according to the ‘Global Capital Flows Report’.
The first quarter of the year saw $995.1 million in foreign investment, while the second quarter witnessed a substantial increase to $2.5 billion. Notably, nearly 70% of investments during the first half of the year were focused on ready assets, although the report predicts a rise in investments in developmental assets in the coming years, fueled by India’s rapid growth and infrastructure development.
The industrial and warehousing sectors were particularly active during this period. Investments in industrial assets saw a nearly fivefold increase compared to the same period last year. Piyush Gupta, Managing Director, Capital Markets & Investment Services at Colliers India, attributes this growth to “rising demand from third-party logistics and E-commerce players and strengthening of manufacturing capabilities across key industrial corridors of the country.”
Several new funds, including Mubadla, Mitsubishi Fudson, PAG Credit & Markets, Cadillac Fairview, Korea Investment Corp, and PNB Malaysia, have been actively exploring India’s real estate market, either expanding their investments or forming new partnerships.
India’s luxury real estate segment is also booming, with an expected compound annual growth rate (CAGR) of over 5% during 2023-2028. Non-resident Indians (NRIs) are playing a significant role in this growth, injecting $13.1 billion into the market in the previous year. By 2025, NRIs are projected to account for 20% of the country’s total real estate investments.
While India’s real estate market continues to attract significant foreign investment, transaction volumes in the APAC region have declined throughout 2024. This decline, particularly in land and development site transactions, is primarily attributed to a 40% year-on-year drop in sales in China.
First Piper 