Real estate investments in the Asia Pacific market have increased by 12 per cent YoY to reach $155.9 billion in 2024, stated a report by Colliers. The growth, it added, underscores the continued resilience of the region’s top nine markets – Australia, Mainland China, Hong Kong, India, Japan, Singapore, South Korea, New Zealand and Taiwan.
Colliers released ‘Asia Pacific Investment Insights H2 2024’ report which said that South Korea, Japan, and Mainland China together accounted for 59 per cent of total $83.2 billion real estate investments in H2 2024. Meanwhile, India, South Korea, Taiwan, and Australia saw significant investment growth, each recording more than 30 per cent year-on-year increases during the period.
In terms of segments, office and industrial & logistics remained most popular in H2 2024, driving around 60 per cent of the total investments. Retail and hospitality segments too experienced a significant rebound, with retail investments up by 31 per cent year-on-year to $15.0 billion during H2 2024. Both Australia and South Korea saw inflows exceeding $3.0 billion in the retail segment, reflecting renewed investor confidence in asset classes.
Per the report, India continued to exhibit strong momentum within the APAC region, with H2 2024 witnessing 88 per cent annual rise in investments at $3.0 billion. In India, office assets drew the majority of investments at 47 per cent share, followed by industrial & logistics at 27 per cent share. In terms of cities, Mumbai attracted almost half of the investments during H2 2024, primarily led by acquisition of office assets.
Badal Yagnik, Chief Executive Officer, Colliers India, said, “Institutional investments in Indian real estate have shown remarkable growth, with 2024 witnessing a 22 per cent rise in capital inflows at $6.5 billion. This momentum is expected to continue in 2025, driven by favorable economic growth prospects and optimistic investment sentiments.”
Moreover, he added that the anticipated continuity in easing of monetary policy including further reduction in repo rate, is expected to enhance liquidity and drive transactional activity across real estate segments in 2025.
Vimal Nadar, Senior Director & Head of Research, Colliers India, said, “Steady growth in investment volumes underscores India’s prominence as a preferred real estate investment destination for both domestic and foreign capital. In H2 2024, foreign investments accounted for 57 per cent of total inflows, while domestic investments, at $1.3 Billion, saw a notable 8 per cent YoY growth.”
In addition to the USA, Canada and the EU, Colliers maintained, investment inflows from other countries in the APAC region will remain buoyant in 2025 and are likely to account for a significant portion of institutional investments in Indian real estate. “Looking ahead, while global investors will continue to diversify their real estate portfolios, domestic investors are expected to make further inroads in segments with relatively higher yields such as office and industrial & warehousing,” Vimal Nadar added.
Chris Pilgrim, Colliers’ Managing Director of Global Capital Markets, Asia Pacific, said, “The resilience of the Asia Pacific real estate market is undeniable, with institutional investments rising and demonstrating strong growth last year, setting the stage for a robust 2025.”
Overall, real estate investment volumes in the Asia Pacific region are likely to remain sturdy in 2025, amidst easing inflation, healthy economic growth prospects and declining borrowing costs across major markets.