India ranks 3rd in foreign real estate investment after China, Singapore

India ranks third globally for foreign investors interested in land and development projects in 2024, following China and Singapore, according to the latest Colliers report.

Around 70% of all foreign real estate investments are directed towards India’s industrial and warehousing sectors. This surge is driven by rising demand from logistics companies, particularly those supporting e-commerce, and manufacturers expanding in key industrial corridors of the country, the report says.

In addition to India, the Asia Pacific region houses four of the top 10 global sources of cross-border capital in 2024, including China, Singapore, Hong Kong, and Japan. Japan and China are also notable global destinations for standing assets, with Australia making the top 10 list for global capital destinations, as highlighted in Colliers' Global Capital Flows Report H1 2024.

Piyush Gupta, managing director of Capital Markets & Investment Services at Colliers India, says the momentum in foreign investment in India’s industrial and warehousing sectors is accelerating. He attributes this growth to increased demand from third-party logistics (3PL) providers and e-commerce firms, along with enhancements in manufacturing capabilities across major industrial corridors.

China leads the global rankings with a substantial $36.48 billion in cross-border capital for land and development, predominantly staying within the Asia Pacific region. In the second quarter of 2024, 77% of the global capital targeting such assets was directed to China, down from its five-year average of 79.8%.

Singapore ranks second with $1.93 billion in investments, all of which remains within the Asia Pacific region, reflecting its strong regional focus. Singapore's share of global investment in Q2 2024 increased to 4.1%, up from its five-year average of 1.3%.

India occupies the third spot with $1.49 billion in cross-border investment for land and development. Of this, $272 million was sourced globally, while $1.22 billion came from regional investments. India’s share of global capital stands at 3.1%, showing an increase from its five-year average of 1.3%.

The UK ranks fourth with $1.32 billion in cross-border capital, predominantly from global sources, capturing 2.8% of the total Q2 2024 capital, above its five-year average of 2%.

Germany ranks fifth with $1.23 billion in cross-border investment, with $775 million from global sources and $456 million from regional sources, representing 2.6% of the total Q2 2024 capital, slightly exceeding its five-year average of 1.8%.