77% of foreign real estate investments in India between 2019 and 2023: report

A report released on Wednesday stated that between 2019 and 2023, foreign inflows accounted for 77% of all institutional investment in Indian real estate, indicating “continuing confidence” in the industry.  

According to real estate consultancy Colliers, the average yearly total investment in that period was $ 5.1 billion (see 2024 Investor Insights—Country Spotlight Series’ report). Four billion dollars came from outside sources. 

Managing director of Colliers India’s Capital Markets & Investment Services, Piyush Gupta, stated, “Global investors have always remained at the forefront and consistently infused an average of $4 billion annually in the last five years, showcasing continued commitment and confidence towards the sector.” With an average inflow of $2 billion, the office sector saw the highest. 

The alternatives sector is worth $0.5 billion, with the remaining sectors being residential, mixed-use, industrial, and logistics, each worth $0.4 billion.  

“Residential, industrial, and alternative properties are likely to witness renewed interest, even though income-yielding office assets continue to enjoy strong preference,” the report stated.

The top two investors in Indian real estate are the United States and Canada, and interest from Asia–Pacific (APAC) nations like Singapore, Hong Kong, South Korea, and Japan is growing.   

According to the data in the report, inflows into Indian real estate from APAC doubled to $1.8 billion in 2023 from $0.9 billion in 2019. The region brought in 41.1 billion in 2022 but only $57% of the amount in 2023. 

APAC nations are interested in residential, industrial, and warehousing assets and invest 70% of their money in office space in India. 

Due to strong demand and a favorable business climate, India’s real estate market “witnessed increased activity” in 2024. “Security about the policy environment, closing the gap between buyers and sellers, and investor intent to deploy more capital across real estate asset classes are some of the causes why heightened activity is predicted,” the report stated. 

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