Chinese companies lead outflow of investments from Asia
Since the global financial crisis, aggregate outflows of capital from Asia to property markets in the rest of the world have risen sharply to reach $58.9 billion in 2016, while inflows have stagnated at under 30% of this level, said a Colliers International report released.
The report, “Strong growth outlook in Asia Pacific Markets”, said this heavy investment outside Asia has been led by mainland Chinese groups, which represented 43% of Asia-to-global flows last year, and has been focused on the US.
“The economic environment in Asia Pacific looks mostly healthy as we move into 2017. India is achieving real GDP growth of 7% y-o-y, and a firm investment demand,” it said.
“Colliers International believes that it may be fantasy to expect Asian property capital flows to reverse in 2017: outflows should slow, but inflows may only rise slowly. Asian property investors may see particular investment opportunities in China, Hong Kong, Singapore and India over the medium term.”
“The strong economy with above 7% growth in the coming year, controlled inflation close to 4% on a sustained basis, and proactive policy initiatives by the Government are likely to improve India’s attractiveness to investors. With a number of Chinese investors scouting for opportunities in the Indian market, the capital flow in real estate is likely to increase in the coming years”, said Surabhi Arora, Senior Associate Director, Research at Colliers International India.