According to Knight Frank ‘ India ranked 5th in cross-border real estate investments in the APAC region, attracting 9% of the total volume of investment within the region in the first half of 2024. The total cross-border investments in APAC during this period reached USD 11.5 billion, with India receiving USD 3 billion from global private equity investors.
In terms of investment in Indian real estate, the office sector accounted for 36% of the total global capital allocation, reflecting the strong appeal of commercial real estate assets. The industrial sector followed closely with 30% of the investment share, while the residential sector received 15%, and retail accounted for 10%.
Cross-border capital flows are significantly shaping the commercial real estate landscape in APAC, driving the search for new investment opportunities. The anticipated rate cuts can further exceed a one-third increase in cross-border investments in the region in the second half of 2024, compared to the same period in 2023.
Among key gateway markets, Australia is likely to receive the highest volume of cross-border investments in H2 2024, marking a 129% increase from the previous year. For the full year 2024, Australia, Japan, and Singapore are expected to be the top three destinations for cross-border capital, with estimated shares of 36%, 23%, and 11%, respectively.