India Leads APAC Real Estate Growth With 88 Per Cent Surge YoY In Investments

India has proven to be a standout performer in the Asia-Pacific (APAC) real estate investment market, recording an 88 per cent year-on-year increase in investments, as per Colliers’ latest report released on 18 March. Indian market reached $3 billion in the second half of 2024.

The broader APAC region experienced a 6 per cent year-on-year rise in real estate investments during the same period, totalling $83.2 billion, with South Korea, Mainland China, and Japan collectively accounting for 59 per cent of total transactions. For the entire year, APAC investment volumes amounted to $156 billion, marking a 12 per cent increase from 2023.

"Institutional investments in Indian real estate have demonstrated remarkable growth, and we anticipate this trend will persist into 2025, driven by robust economic fundamentals and proactive government policies," stated Badal Yagnik, CEO of Colliers India, in the official statement. "Moreover, anticipated monetary policy easing, including potential repo rate cuts, should further enhance liquidity and transactional activity."

India’s Real Estate Investment Boom

India's investment surge was primarily driven by the office sector, which secured 47 per cent of inflows, followed by the industrial and logistics segment at 27 per cent. Mumbai contributed nearly half of the country's total real estate transactions in the second half of the calendar year 2024, as per the report.

Investment Trends Across APAC

Meanwhile, South Korea, Taiwan, and Australia stood as the top-performing countries in APAC markets. The three countries recorded over 30 per cent year-on-year growth in the second half of the calendar year 2024. However, the office and industrial & logistics sectors led the investment scenario, comprising around 60 per cent of total inflows.

Retail and hospitality signs of strong recovery emerged, with retail investments rising 31 per cent year-on-year to $15 billion. Australia and South Korea led this sector, each surpassing $3 billion in retail assets.

"The resilience of the APAC real estate market is evident, with institutional investments rising significantly last year, setting the groundwork for a strong 2025," remarked Chris Pilgrim, Managing Director of Global Capital Markets for Asia Pacific at Colliers, in an official statement. The office sector remained robust, driven by corporate expansions, meanwhile industrial, logistics, and residential investments continued to attract interest, as per Pilgrim.

Foreign vs. Domestic Capital Flows

A significant proportion of institutional investments in Indian real estate came from foreign sources in the second half of the calendar year 2024. APAC-based investors increased their exposure to Indian assets, while capital inflows from the US, Canada, and the European Union remained strong.

In the second half of the calendar year 2024, Indian investors committed $1.3 billion, representing an 8 per cent increase from the previous year.

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