India ranks 5th in APAC cross-border real estate investments: Knight Frank

Cross-border investment: India has emerged as fifth-largest destination for cross-border real estate investments in Asia-Pacific (APAC) region, securing 9 per cent of total investment volume in first half of 2024. This is according to Knight Frank's latest report, 'Asia Pacific Horizon: Look Beyond Norms.' report highlights that total cross-border investments in APAC during this period reached $11.5 billion, with India receiving a substantial $3 billion from global private equity investors.

Office Sector Dominates Cross-Border Investments in India

Within Indian real estate sector, office market has proven to be particularly attractive, accounting for 36 per cent of total cross-border capital allocation. This reflects strong appeal of commercial real estate assets in country. industrial sector follows closely with 30 per cent of investment share, while residential sector secured 15 per cent, and retail sector accounted for 10 per cent of total investments.

Top 5 APAC Destinations for Cross-Border Capital

Australia les APAC region as top destination for cross-border real estate investments, capturing 36 per cent of total capital. It is followed by Japan with 23 per cent, Singapore with 11 per cent, Greater China with 10 per cent, and India with 9 per cent. se rankings underline India's growing significance in global real estate investment landscape.

India's Real Estate Market Set for Growth

Shishir Baijal, Chairman and Managing Director of Knight Frank India, commented on report, stating, " expected turnaround of global economies in second half of year is likely to encourage more foreign private equity players to take vantage of country’s robust domestic macros. This influx of investment would boost performance of Indian real estate and maintain growth of industry assets.”

Anticipated Growth in APAC Cross-Border Investments

report furr projects a significant rise in cross-border investments across APAC region, driven by search for new investment opportunities and anticipated rate cuts. Cross-border investments in region are expected to increase by over 33 per cent in second half of 2024 compared to same period in 2023. Among key markets, Australia is poised to receive highest volume of cross-border investments in H2 2024, marking a 129 per cent  increase from previous year.

Outlook for 2024

For full year 2024, Australia, Japan, and Singapore are expected to remain top three destinations for cross-border capital, with estimated shares of 36 per cent, 23 per cent, and 11 per cent, respectively.

Christine Li, He of Research at Knight Frank Asia-Pacific and author of report, remarked, “Historical analyses of previous crises, including Global Financial Crisis, Chinese economic slowdown, and Covid-19 pandemic, demonstrate that transaction volumes in region typically normalise within 30 months. Currently, we are in 24th month of high-interest-rate-induced downturn, suggesting second half offers a prime investment window for undervalued assets. Early indicators of recovery are alrey observed in Australia and South Korea.”