When will REITs strike the right chord?
Reforms put REITs on growth path, but investor base remains narrow
Real estate investment trusts (REITs) in India have seen a surge in popularity in recent years, driven by regulatory reforms. The market capitalization of listed REITs has now surpassed ₹2 lakh crore, following the listing of Bagmane Prime REIT. Key players such as Embassy Office Parks REIT and Knowledge Realty have contributed to this growth.
The Union government, SEBI, and RBI have taken several measures to boost the appeal and acceptance of REITs, including reclassifying them as equity instruments and allowing commercial banks to lend directly to them. However, REITs have yet to reach a wider investor base, despite the recent policy push and growing investor interest.
With only six REITs in the market so far and a nascent stage for the sector, there is still a long way to go before REITs become a mainstream investment avenue in India.
Written by urgent.news from Hindu BusinessLine's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.
