India ranks 5th in APAC real estate investments, captures 9% in H1 2024: Knight Frank

New Delhi [India], August 3 (ANI): Emerging as a formidable player in the Asia-Pacific region (APAC) real estate market, India has secured the 5th spot in cross-border investments, Knight Frank said in its recent report.

The country captured 9 per cent of the total investment volume in the first half of 2024.

Among the top countries attracting investments, Australia captured 36 per cent of the total investment flow followed by Japan which attracted 23 per cent of total investments. Singapore and Greater China remained in third and fourth place securing 11 per cent and 10 per cent of the total investments respectively.

India received USD 3 billion from global private equity investors out of the total cross-border investments in APAC during the year 2024.

The office sector leads with 36 per cent of the total global capital allocation in Indian real estate, followed by the industrial sector at 30 per cent, residential at 15 per cent, and retail at 10 per cent.

Reacting to the development, Shishir Baijal, Chairman and Managing Director, of Knight Frank India said, “The expected turnaround of global economies in the second half of the year is likely to encourage more foreign private equity players to take advantage of the country’s robust domestic macros. This influx of investment would boost the performance of Indian real estate and maintain the growth of industry assets.”

Highlighting the investment sentiment in the region, the report noted that the cross-border capital flows are reshaping the commercial real estate landscape across APAC, as investors seek new opportunities.

The report further anticipated that the expected rate cuts will drive a more than one-third increase in cross-border investments in the region during the second half of 2024 compared to the same period in 2023.

Australia is poised to be the biggest beneficiary, with projections indicating a 129 per cent rise in cross-border investments in H2 2024.

According to the report, Australia, Japan, and Singapore will dominate the region, attracting 36 per cent, 23 per cent, and 11 per cent of the cross-border capital, respectively for the entire year.

Christine Li, Head of Research at Knight Frank Asia-Pacific and author of the report said, “Historical analyses of previous crises, including the Global Financial Crisis, the Chinese economic slowdown, and the Covid-19 pandemic, demonstrate that transaction volumes in the region typically normalise within 30 months.”

“Currently, we are in the 24th month of the high-interest-rate-induced downturn, suggesting the second half offers a prime investment window for undervalued assets. Early indicators of recovery are already observed in Australia and South Korea,” Li added.