India, South Korea Real Estate Investment Outlook 2024: Colliers

New Delhi, Nov 29 (PTI) India and South Korea in the Asia Pacific region are expected to witness heightened investment activities across various real estate asset classes as global investors look to tap the growth potential in these two key markets, according to Colliers India.

Real estate consultant Colliers released its 2024 Global Investor Outlook on Wednesday along with Asia Pacific highlights.

The consultant expects "high activity in more growth-oriented destinations such as India and South Korea, given the return of investor confidence and the opportunities they offer."

The report highlighted that India is expected to remain one of the world's fastest-growing major economies, led by private consumption and capital formation.

Institutional investment in real estate soared 27 per cent year-on-year in the first nine months of 2023, with a noticeable surge in deals targeting industrial and residential, both sectors closely connected to the country's robust growth trajectory.

Institutional investors are specifically capitalising on India's data centre growth story, sparked by the stable income, higher yields and supportive regulatory framework of this asset class, which has infused USD 1.1 billion since 2020.

"We're also seeing more regional investors and funds beginning to underwrite India as a market, and to understand its dynamics as part of a wider investment strategy," the report said.

As more established markets start to stabilise, Piyush Gupta, Managing Director, Capital Markets & Investment Services at Colliers India, said investors are growing more confident about extending their search for opportunities in growth markets.

"This is particularly apparent in India, which is expected to remain one of the fastest-growing major global economies, led by private consumption and capital formation. The opportunities to invest in India continue to spread across office, logistics, private credit, residential and data centres," he added.