India Continues To Lead Real Estate Growth In APAC, Says Report. Check Details Here

The steady rise in investment volumes highlights India’s growing role as a preferred destination for real estate investment, attracting both domestic and foreign capital, states the report

The continued easing of monetary policy, including a potential further reduction in the repo rate, is expected to improve liquidity and boost transactional activity across real estate sectors in 2025

Source : PTI

Real estate investments in the Asia Pacific region grew by 12 per cent year-on-year (YoY), reaching $155.9 billion in 2024. India maintained strong momentum, with the second half of the year (H2) seeing a significant 88 per cent increase in investments, totalling $3.0 billion, according to a new report released on Tuesday.

According to a Colliers report, India, South Korea, Taiwan, and Australia experienced notable investment growth, each seeing YoY increases of over 30 per cent during the period, among the nine markets in the APAC region. In India, office assets continued to dominate, capturing 47 per cent of total investments, followed by industrial and logistics assets at 27 per cent.

Mumbai was a major attraction, drawing nearly half of the investments in the second half of 2024, largely due to the acquisition of office assets, reveals the report.

The steady rise in investment volumes highlights India’s growing role as a preferred destination for real estate investment, attracting both domestic and foreign capital. In H2 2024, foreign investments made up 57 per cent of the total inflows, while domestic investments saw an 8 per cent increase to $1.3 billion.

Momentum Expected To Continue

“Institutional investments in Indian real estate have shown remarkable growth, with 2024 witnessing a 22 per cent rise in capital inflows at $6.5 billion. This momentum is expected to continue in 2025, driven by favourable economic growth prospects and optimistic investment sentiments,” said Badal Yagnik, Chief Executive Officer, Colliers India.

The continued easing of monetary policy, including a potential further reduction in the repo rate, is expected to improve liquidity and boost transactional activity across real estate sectors in 2025. With diverse investment opportunities and proactive government policies, strong capital deployment is anticipated across both core and non-core assets throughout the year, according to Yagnik.

Looking ahead, while global investors will likely continue diversifying their real estate portfolios, domestic investors are expected to increasingly target segments with higher yields, such as office and industrial and warehousing, noted Vimal Nadar, Senior Director and Head of Research at Colliers India.