Global investors infuse $23 bn in Indian realty since 2018

Chennai: Global investors have pumped over $23 billion into the Indian realty market since 2018. The investment activity is expected to remain robust in 2024 as well.

Global investors have infused over $23.3 billion since 2018 and this accounted for 77 per cent of the total investments received by the sector during this period. The US remains the top investor contributing to about 44 per cent of the foreign inflows, followed by Canada and APAC at 25 per cent share each.

India remains one of the fastest growing economies of the world at 6.3 per cent in 2024. Investments into India have seen a strong 27 per cent y-o-y growth so far in 2023. From the lens of global and APAC investors, the Indian real estate market currently offers stable returns paired with attractive pricing, better valuations, and higher yields.

“India is expected to remain one of the fastest-growing major global economies, led by private consumption and capital formation. The opportunities to invest in India continue to spread across office space, logistics, private credit, residential, and data centres”, said Piyush Gupta, Managing Director, Capital Markets & Investment Services at Colliers India.

Office space garnered the largest portion of investments since 2018 at $11.4 billion. Residential realty received $2.6 billion, industrial and warehousing $2.5 billion, mixed-use $2.9 billion, alternate assets $2.3 billion, and retail got $1.6 billion.

Colliers anticipates a more positive 2024 than 2023, with a lot of pent-up equity looking to find a home. Particularly within the APAC region, investors are aware of the resilience of the asset class and the growth opportunities offered in rapidly maturing markets such as India and South Korea. Almost 60 per cent of APAC investors expect strong regional economic growth to contribute positively to the real estate environment.

“Foreign investors are likely to remain bullish on the Indian market over the next few quarters, as interest cycle continues to reverse, and the yield spread between bonds & real estate continue to widen, making real estate an attractive proposition,” said Vimal Nadar, Senior Director and Head of Research, Colliers India.