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India’s outbound capital into commercial real estate rose by 92 per cent $0.7 billion in 12 months to the first quarter of calendar year 2019 (Q1 2019), according to a study by property consultancy firm Knight Frank.
United Kingdom, the Netherlands, Germany, US and Australia were the top destination countries of Indian capital investments. Inbound cross border investment volumes into Indian commercial real estate accounted to $2.6 billion during the period, the report titled ‘Active Capital’ said.
“With geopolitical factors coming into play, prolonged global economic cycle and interest rate in late cycle investment is 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 & Managing Director at Knight Frank India said.
Between the first quarter of 2018 and first quarter of 2019, total outbound capital from Asia Pacific dropped 34 per cent (from $88 billion to $57 billion), coming in third behind North America ($110 billion) and Europe ($104 billion), due in part to the significant fall in outbound capital from China and became net importer of capital.
In the same period, Singapore overtook Hong Kong, recording a 23 per cent rise in outbound capital. According to the report, Singapore has already invested more than $4 billion into China, South Korea, the UK and Australia in Q1 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,” said Neil Brookes, Asia-Pacific Head of Capital Markets at Knight Frank said.
APAC inbound capital
With investment volumes of $704,143,457, Singapore was the biggest capital source country for the Indian commercial real estate between Q1 2018 and Q1 2019, followed by Australia ($98,647,399) and Japan ($25,356,029).
India ranks 20th in the aspect of top capital importing countries, globally.
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