India Emerges as a Key Player in Asia-Pacific Real Estate

A recent report by Knight Frank reveals India's strong position in the Asia-Pacific (APAC) real estate market, ranking fifth in cross-border investments during the first half of 2024. The country secured a notable 9% share of the total USD 11.5 billion invested across the region, attracting USD 3 billion from global private equity investors.

Commercial Real Estate Drives Investment

The office sector dominated India's investment landscape, capturing 36% of the total capital allocation. This highlights the sustained appeal of commercial assets, driven by factors such as stable returns and robust demand. The industrial sector also performed well, securing 30% of investments.

Positive Outlook for India's Real Estate Market

Shishir Baijal, Chairman and Managing Director of Knight Frank India, expressed optimism about the future. He anticipates that the expected global economic recovery in the second half of 2024 will encourage more foreign investors to enter the Indian market, further bolstering its real estate sector and supporting asset growth.

APAC Cross-Border Investments Set to Surge

Cross-border capital flows continue to play a pivotal role in shaping the APAC commercial real estate market. Anticipated rate cuts and the ongoing search for new investment opportunities are projected to drive a significant increase in cross-border investments in the region, potentially exceeding a one-third increase in the second half of 2024 compared to the same period in 2023.

Key Gateway Markets

Australia is expected to lead the way in attracting cross-border investments in the second half of 2024, with a projected 129% year-on-year increase. Overall, Australia, Japan, and Singapore are poised to be the top three destinations for cross-border capital throughout 2024.

Early Signs of Recovery

Christine Li, Head of Research at Knight Frank Asia-Pacific, points to historical data indicating that transaction volumes in the region typically recover within 30 months after economic downturns. The current market suggests that the second half of 2024 presents a prime window for investors seeking undervalued assets, with Australia and South Korea already showing signs of recovery.

Key Takeaways:

• India's strong performance in attracting cross-border real estate investments underscores its growing prominence in the APAC market.

• The office and industrial sectors continue to lead investment activity in India.

• Positive economic outlook and anticipated rate cuts are expected to further boost cross-border investments in the APAC region.

• The second half of 2024 presents a favorable investment window for those seeking undervalued assets.

-source: news18.com