India high-growth realty market for global investors in Asia-Pacific region

Bengaluru: India's real estate market has become a high-growth destination in the Asia-Pacific (APAC) region, attracting significant interest from global investors. The surge is driven by corporate expansions and rapid growth of ecommerce, according to Colliers. As per data from the firm, India recorded an 88% year-on-year surge in real estate investments to $3.0 billion in the second half of 2024.

Sovereign wealth funds, private equity firms and real estate investment trusts (REITs) such as the Canada Pension Plan Investment Board (CPPIB), Keppel Land, CapitaLand, Prologis and Blackstone Group are actively seeking opportunities in office and industrial logistics segments, positioning India as a key investment hub. While these sectors maintain their lead, retail and hospitality assets are witnessing a resurgence.

"Institutional investments in Indian real estate have shown remarkable growth," said Badal Yagnik, CEO of Colliers India. "The anticipated continuity in easing of monetary policy, including further reduction in the repo rate, is expected to enhance liquidity and drive transactional activity across real estate segments in 2025. Diverse investment opportunities, along with proactive government policies, are likely to support robust capital deployment across core and non-core assets throughout 2025."

Major investments include the CPPIB's $750 million investment in RMZ's office assets, while Keppel Land, in collaboration with RMZ Corporation and CPPIB, deployed $264 million into office developments. Additionally, Blackstone Group made a strategic investment of $203 million in LOGOS India's industrial and warehousing assets, underscoring the strong demand for logistics facilities.

According to Colliers, during the second half of 2024, real estate investments in APAC increased 6% year-on-year to $83.2 billion, led by South Korea, Mainland China and Japan. India, South Korea, Taiwan and Australia saw investment growth exceeding 30% year-on-year.

"India continues to be a high-growth market in the Asia-Pacific region, and CapitaLand Investment is focused on expanding our presence there," said Sanjeev Dasgupta, CEO, CapitaLand Investment (India). "Recognising India's immense potential, over 70% of our assets are in business parks. In addition to business parks and logistics, we are also investing in new economy asset classes, such as data centres. Our listed CapitaLand India Trust and private funds will drive this growth, alongside our four private funds dedicated to logistics and business parks. As we increase our investments in the country, we remain committed to strengthening CapitaLand's leadership in India's evolving real estate landscape across these key sectors."