Real estate investments in the Asia Pacific market increased 12 percent year-on-year to reach $ 155.9 billion in 2024, according to a report by Colliers. Within the APAC region, India continued to exhibit strong momentum with the second half of 2024 witnessing an 88 percent annual rise in investments at $ 3 billion.
According to Colliers' ‘Asia Pacific Investment Insights H2 2024’ report, office assets continued to draw the majority of investments with a 47 percent share, followed by industrial & logistics with a 27 percent share.
Mumbai attracted almost half of the investments during H2 2024, primarily led by acquisition of office assets. Experts said this momentum is expected to continue in 2025, driven by favourable economic growth prospects and optimistic investment sentiments.
Badal Yagnik, Chief Executive Officer, Colliers India, said that institutional investments in Indian real estate have shown remarkable growth and this momentum is expected to continue in 2025.
“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. Diverse investment opportunities along with proactive government policies are likely to support robust capital deployment across core and non-core assets throughout 2025,” he said.
According to the report, South Korea, Japan, and Mainland China together accounted for 59 percent of the total investments of $ 83.2 billion in real estate in H2 2024. India, South Korea, Taiwan, and Australia, meanwhile saw significant investment growth, each recording more than 30 percent YoY increases during the period.
The office and industrial & logistics sectors remained key segments in H2 2024, driving around 60 percent of the total investments. The retail and hospitality segments too experienced a significant rebound, with retail investments increasing 31 percent YoY to $ 15 billion during H2 2024.
Chris Pilgrim, Colliers’ Managing Director of Global Capital Markets, Asia Pacific, said that the office segment will continue to witness strong momentum, underpinned by robust leasing and corporate expansions in key markets, and industrial & logistics and residential investments will remain significant, drawing from long-term stable structural demand.
“We expect retail, hospitality and alternative asset classes to gain traction as the year progresses, as investors move to capitalise on recovery momentum and evolving consumer trends,” he said.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
