77% of investment in Indian real estate in 2019-23 by foreigners: Report

A recent report from real estate consultancy Colliers highlights that between 2019 and 2023, foreign inflows constituted 77% of the total institutional investment in the Indian real estate sector, reflecting sustained confidence in the industry. With an average annual investment of US$ 5.1 billion during this period, of which US$ 4 billion comprised foreign inflows, the data underscores the consistent commitment of global investors, as stated by Mr. Piyush Gupta, Managing Director (Capital Markets & Investment Services) at Colliers India.

The office sector emerged as the recipient of the highest average inflow (US$ 2 billion), followed by the alternatives sector (US$ 0.5 billion) and industrial and logistics, residential, and mixed-use sectors (US$ 0.4 billion each). The report anticipates a resurgence of interest in residential, industrial, and alternative segments alongside the continued preference for income-yielding office assets. Notably, the United States and Canada remain the primary sources of capital in the Indian real estate market, while countries in the Asia-Pacific (APAC) region, such as Singapore, Hong Kong, South Korea, and Japan, exhibit growing interest. APAC investments in Indian real estate doubled to US$1.8 billion in 2023 from US$ 0.9 billion in 2019, with 70% directed towards office space and a keen interest in residential, industrial, and warehousing assets. The report foresees heightened activity in India's real estate market in 2024, driven by robust demand and a favourable business environment, signalling increased investor confidence across various asset classes.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.