The Reserve Bank of India on Friday proposed to allow banks to lend to Real Estate Investment Trusts (REITs) with certain prudential safeguards to deepen the financing pool for the real estate sector.
Since their inception, they have cumulatively distributed over Rs 26,700 crore to unitholders.
Currently, India has five publicly listed Reits: Brookfield India Real Estate Trust, Embassy Office Parks Reit, Mindspace Business Parks Reit Nexus Select Trust, and Knowledge Realty Trust.
India's market regulator is moving ahead to include real estate investment trusts (Reits) in benchmark indices in a phased manner, Sebi chief Tuhin Kanta Pandey said, while asserting that the regulator was working to strengthen the link between infrastructure building and the markets.
Indian Real Estate Investment Trusts (REITs) are generating an average yield of 6-7.5 per cent for unitholders, better than many mature markets, including the US, according to a report by CREDAI and Anarock. CREDAI, the apex body of Indian real estate developers, and property consultant Anarock released a report 'Indian REITs - A Gateway to Institutional Real Estate' at an event in Singapore.
With average returns of 18 per cent over the past year, listed real estate investment trusts (Reits) have clearly outperformed both the Nifty Realty index and the Sensex. Over the same period, Nifty Realty fell 15.5 per cent, while the benchmark index was largely unchanged. Steady office leasing, the Securities and Exchange Board of India's (Sebi's) decision to reclassify Reits as equity instruments, and ongoing portfolio expansion have strengthened the sector's appeal.
India's real estate investment trust (Reit) sector is set for robust expansion, with at least one new Reit expected to enter the market each year over the next three-five years. This growth trajectory builds on rising occupancies, surging leasing activity, and increasing investor interest.
US-based private equity firm Blackstone and Bengaluru-based real estate developer Sattva Group filed the draft initial public offer (IPO) papers for India's biggest real estate investment trust (Reit) named Knowledge Realty Trust to raise ?6,200 crore. The Reit will be the largest in India in terms of net operating income (NOI) and gross assets value (GAV).
After heightened activity in 2024, there has been a slowdown in new listings, with no main-bourse IPOs hitting the market in the past three weeks due to a correction in the secondary market. This slowdown in IPO activity is reflected in the numbers, as only five companies went public in January and four in February, compared to 16 listings in December 2024.
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