India is among key markets globally with cross border real estate investment projections of $2.5 billion in the year 2022, Knight Frank’s Active Capital report 2021 has said.
US, UK, Germany, France, and the Netherlands are forecast to be top destinations for cross border real estate investment in 2022.
The report also said that India’s greenest city for real estate is Delhi which is globally ranked at 63, followed by Chennai at 224, Mumbai at 240 and Hyderabad at 245.
London, Shanghai, New York, Paris, and Washington DC are the world’s greenest cities for real estate.
Cities were measured on a range of factors, such as well-developed public transport networks, urban green space, and a high number of green-rated buildings. Notably, these top five cities also have universities which are benchmarked against UN Sustainable Development Goal 11, which measures the strength of research into sustainable cities and communities.
Yet, while these cities are making strides in supporting carbon reduction (at least on a relative per person basis), none are immune to climate risks. None of the 286 global cities surveyed scored much above six out of ten for resilience against climate risks such as extreme weather events, the report said.
This year’s Active Capital research suggests a resurgence of investment flows into real estate, hitting record pre-pandemic levels into key sectors including offices, logistics and residential, signalling a marked return of investor confidence.
The US, UK, Germany, France and the Netherlands are forecast to be the top destinations for cross border real estate investment in 2022, with the US, Canada, UK, and Germany predicted to be largest deployers of cross border capital in 2022, led by investment managers, institutions and private equity investors.
“A series of structural reforms in recent past has put the country’s real estate sector on high trajectory attracting global attention. Rapidly improving pandemic scenario in the country coupled with policy interventions to support realty sector growth will ensure global capital finds it attractive to participate in the sector.
"The country’s commercial real estate sector has evinced strong global investor interest in segments led by Office and Warehouse. With best-in-class global participation on capital as well as development front, we expect that the volume and quality of product offerings will see a marked scale-up in near future,” said Shishir Baijal, chairman and managing director, Knight Frank India.
The office sector tipped to be the focus of more than half of all major cross-border transactions. Residential is forecast to be the second most invested sector in 2022. Sources of capital are likely to be broad based, targeting a geographically diverse area, including the US, Germany, the UK, the Netherlands, and Japan.
Investment managers and private equity funds, particularly from the US and Canada, are forecast to remain major players in the industrial market in 2022, also targeting a diverse range of locations including the US, the UK, Germany, France and the Netherlands, as well as Spain, Poland and Australia, it said.