Property consultants, Knight Frank in its “Active Capital” 2019 Report, assigned India with the 20th rank among the top capital importing countries, globally. In terms of outbound cross-border investments, it was ranked 30th. Cross-border capital flows into commercial real estate in India accounted to $2.6 billion and outbound cross-border investments increased by 92% to $0.7 billion (Rs 4,893 crore) between the first quarter (Q1) of 2018 and the first quarter 2019. Cross-border capital flows were due to geopolitical factors, prolonged global economic cycle and interest rate in late cycle investment.
i. Globally, The United States (US) was the top capital importing country with an investment of $80.89 billion. It also topped the list of capital exporting countries with an investment of $59.62 billion, followed by Canada with $50.41 billion and Germany with $24.50 billion.
ii. Singapore overtook Hong Kong as Asia-Pacific’s top source for outbound capital. It had invested more than $4 billion in China, South Korea, the UK and Australia in January-March 2019.
iii. Singapore was the biggest capital source country for Indian commercial real estate between the first quarter of 2018 and the first quarter of 2019 with investment of $704.14 million.
iv. China was at the 6th position with an investment of $14.30 billion among the capital importing countries.
Between the first quarter of 2018 and 2019, the total outbound capital from Asia Pacific fell 34% to $57 billion from $88 billion and stood at third position behind North America ($110 billion) and Europe ($104 billion). It was due to the significant fall in outbound capital from China.
Top destinations of Cross-bound investments (Real estate) from Q1 2018 to Q1 2019:
Inbound with Investments ($ m) among APAC (Asia-Pacific)
♦ Headquarters: London, UK
♦ Founded: 1896
♦ Knight Frank India Chairman & MD: Shishir Baijal