India real estate has recovered strongly from the pandemic while nationwide infrastructure investment continues apace. The scale of the market makes it particularly attractive to investors.
Simon Treacy, CEO, private equity real estate, real assets, at Singapore-based CapitaLand Investment, says: “Overseas investment in India is presently dominated by a handful of big sovereigns, but there are a number of other significant investors pressing forward on their investment programs. We are certainly seeing increased activity and momentum. We put out a research paper on India in January this year and it was probably our most popular read.
“The economic drivers are well documented, but there are two things that make a big difference for us. Firstly, the growth in infrastructure is tremendous, with lots of new rail and highways. Secondly, there is a lot of headroom. For example, India has around one billion square feet of logistics space, compared with 20 billion in China and 60 billion in the US.”
1bn sq ft
India’s logistics sector has a lot of room to grow
$13.7bn
Total amount targeted by funds in market
Logistics and office space remain the most popular sectors among private real estate investors, says Hari Krishna V, head of real estate India at Canada’s CPP Investments. “India is seen as a beneficiary of the current global macro dynamics, leading to rising demand for industrial space in key regions. While many countries face challenges in the office real estate sectors, India’s IT services sector continues to see significant growth and more people return to the office compared to developed markets such as the US.”
The life sciences real estate niche is also attracting attention, due to growth in the healthcare sector and the needs of an aging world population. India is a major producer of vaccines and generic medicines, and the life sciences R&D market is growing by 13 percent per annum, says Chanakya Chakravarti, head of indirect strategies, Asia-Pacific, at Ivanhoé Cambridge. “Life sciences investments offer a resilient return profile and promising growth potential,” he says.
November 2022
Singapore sovereign wealth fund GIC and Hong Kong-listed ESR Group announced an 80:20 strategic partnership to establish a $600 million joint venture to acquire income-producing core industrial and logistics assets in India
January 2023
Canada’s CPP Investments committed $205 million to become an anchor investor in the IndoSpace Logistics Park IV fund. Founded in 2007, IndoSpace is a Mumbai-based joint venture between the Everstone Group and Realterm
February 2023
Ivanhoé Cambridge formed a 50:50 partnership with Singaporean real estate company Mapletree. Their C$2.5 billion ($1.46 billion; €1.74 billion) investment platform will develop, acquire and operate workplace technology companies
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