New Delhi [India]: Four of the top five global destinations for land and development site investment in the first quarter of 2024 were in Asia Pacific, including India, according to a new report by Colliers.

The report, Asia Pacific Global Capital Flows May 2024, has listed India, China, Singapore and Australia as the top five destinations globally for cross-border capital investment in land/development sites in the first quarter of 2024.

The report from the diversified professional services and investment management company highlighted key trends in the real estate sector.

The report said institutional investors in India prefer fully and pre-leased properties as they offer immediate, stable returns, low risk, regulatory compliance and easy exit.

According to the report, consistent economic growth, strong demand fundamentals and an optimistic business outlook in India compared to its global peers have boosted the confidence of global institutional investors to explore multiple avenues for investment in India.It further revealed that investors are partnering with local developers and investors in developmental properties spanning office, residential and industrial sectors.

It underlined the economic reforms which have led to promising inflows in institutional investments across various asset classes in the real estate sector.

Sustained economic growth, strong demand fundamentals and an optimistic business outlook in India relative to its global peers have boosted the confidence of global institutional investors to explore multiple avenues for investment in India.

“The past two years have seen significant investment in land, especially for residential projects, with major real estate developers keen to strategically acquire large contiguous land parcels. Meanwhile, institutional investment in the residential sector is also expected to increase by 2023. During this period, an increase of 20 percent has been observed on annual basis., at USD 0.8 billion. With strong residential sales momentum across cities, this trend is expected to continue, making it an opportune time to capitalize on greenfield development opportunities, especially in residential real estate,” said Vimal Nadar, Senior Director and Research The chief said. , at Colliers India.

Highlighting the growth prospects of real estate in Indian cities, the report forecasts expansion of the sector beyond the major six cities, supported by infrastructure advancements, increased digital penetration in these cities and supportive regulatory framework , which offers a range of opportunities for investors.

“Foreign investors continue to display confidence in India's real estate sector, investing USD 3.6 billion during 2023, accounting for 67 per cent of the total inflows.The preference towards ready-to-move-in quality office assets will continue alongside growth, with an emphasis on sustainability coupled with visibility. Capital in Indian real estate is becoming more diversified across sectors such as residential, logistics, alternatives and credit,” said Piyush Gupta, managing director, capital markets and investment services at Colliers India.