India is one of the top countries in the world to invest in land and development sites in Q1 of 2024: Report
June 9, New Delhi, India (ANI): According to a new Colliers analysis, four of the top five global locations for investments in land and development sites in the first quarter of 2024 were in Asia Pacific, which included India.
India, China, Singapore, and Australia were the top five international locations for cross-border capital investment in land/development sites in the first quarter of 2024, according to the study Asia Pacific Global Capital Flows May 2024.
The research provided insight into the major trends in the real estate industry from the diversified professional services and investment management organisation.
According to the survey, completed and pre-leased assets were preferred by institutional investors in India because they provide quick and consistent returns, minimal risk, regulatory compliance, and simple exit strategies.
Strong demand fundamentals, sustained economic development, and an optimistic business outlook for India compared to its worldwide peers have bolstered confidence among global institutional investors in investigating various investment opportunities in India, the research states.
It was made clear that the investors are working in collaboration with regional developers and investors to build assets in the office, residential, and industrial sectors.
It emphasised the economic changes that have led to encouraging inflows into institutional real estate investments across a range of asset classes.
Strong demand fundamentals, consistent economic development, and an optimistic business outlook for India compared to its global rivals have given international institutional investors more confidence to explore a variety of investment opportunities in India.
Significant land investments have been made over the last two years, mostly for residential projects. Notable real estate developers are eager to purchase sizable, adjacent land parcels in a planned manner. In the meantime, institutional investments in the residential sector increased by 20% YoY in 2023 to reach USD 0.8 billion. It is a good time to take advantage of greenfield development prospects, particularly in residential real estate, since there is strong residential sales momentum in several cities, according to Vimal Nadar is Head of Research and Senior Director at Colliers India.
The report highlights the potential growth of the real estate industry in Indian cities and projects that it will expand beyond the top six cities. This expansion will be supported by improvements in infrastructure, a rise in the use of digital technology, and a supportive regulatory environment in these cities, which will present a variety of opportunities for investors.
“International investors are still showing faith in India’s real estate market; in 2023, they will contribute USD 3.6 billion, or 67% of all inflows. There will still be a desire for high-quality office properties that are both developmental and ready to move into, with a clear focus on sustainability. Piyush Gupta, Managing Director of Capital Markets and Investment Services at Colliers India, stated that the capital in Indian real estate is becoming increasingly diversified to include sectors like Residential, Logistics, Alternatives, and Credit.
