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India’s outbound capital into commercial realty up 92% in year to Q1 2019: Report

Singapore overtakes Hong Kong as Asia-Pacific’s top source for outbound capital, says a report by Knight Frank

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India’s outbound capital into commercial real estate increased by 92 percent to $0.7 billion in 12 months to the first quarter of 2019. The United Kingdom, Netherlands, Germany, the United States of America and Australia were the top destination countries of Indian capital investments, according to a new report by Knight Frank.

Inbound cross border investment volumes into Indian commercial real estate accounted to $2.6bn in 12 months to the first quarter of 2019, Knight Frank’s flagship has said in its Active Capital 2019 report.

Between the first quarter of 2018 and the first quarter of 2019, total outbound capital from Asia Pacific dropped 34 percent (from $88bn to $57bn), coming in third behind North America ($110bn) and Europe ($104bn), due in part to the significant fall in outbound capital from China and became net importer of capital, the report said.

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In the same period, Singapore overtook Hong Kong, recording a 23 percent increase in outbound capital. According to the report, Singapore has already invested more than $4 billion into China, South Korea, the UK and Australia in the first quarter of 2019, reflecting several landmark cross-border deals.

“In the past 12 months, outbound capital from Asia-Pacific, and Singapore in particular, has sought out alternative asset classes in Western markets while reducing their exposure to retail assets in the region, previously thought of as a core asset class,” Neil Brookes, Asia-Pacific Head of Capital Markets, Knight Frank, said.

“With geopolitical factors coming into play, prolonged global economic cycle and interest rate in late cycle investment are prompting cross-border capital flows. The Indian investors are increasingly looking at international commercial real estate assets to diversify risk and increase their returns,” Shishir Baijal, Chairman and Managing Director, Knight Frank India said.

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First Published on Jun 17, 2019 03:35 pm
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