REITs in India-Opportunity Awaits

rsz_ramesh_nair_jll

Considering the capital-intensive nature of the commercial real estate sector as an investment avenue and also the limited investment opportunities with regards to high-grade office assets, REITs (Real estate investments funds) will be a big boon for the Indian real estate industry. In simple terms, a REIT is an investment tool that owns and operates real estate assets and even allows individual investors to invest in and earn income through partial/equity level ownership of commercial real estate without actually having to buy those assets.

REITs are modelled after mutual funds and provide their investors with all types of income streams – as well as the benefits of long-term capital appreciation. A REIT also trades on major stock exchanges and provides investors with a highly liquid stake in real assets typically offering high yields.

Over the last decade, globally, REITs have developed into a mature market force, providing easy access to high-quality assets along with stable return on investments. To illustrate – as of 2016, there were over 500 REITs operating across various countries, with total market capitalization of more than USD 900 billion.

Taking a closer look at REITs globally:

  • USA: The US Congress created the Real Estate Investment Trust (US-REIT) in 1960 to make large-scale, income-producing real estate investments accessible to smaller investors. Since then, US-REIT has dominated the market, and has a market capitalization which grew from USD 1.4943 billion in 1971 to USD 1 trillion by 2016.
  • Singapore: Since the launch of the first Singapore REIT in 2002, the REIT sector has become one of the biggest success stories of the Singapore Stock Exchange (SGX). Singapore REITs have since grown into a USD 53 billion market. Currently, the total ‘REITable’ stock available in Singapore’s CBD is 2.687million sq m.
  • Australia: The first REIT in Australia was the General Property Trust – a listed property trust started in 1971. A-REITs are the largest REIT market in Asia with a total market capitalization of almost €72 billion, accounting for 9.36% of the global REIT market capitalization. The Sydney CBD market has 3.060 million sq. m. of REITable stock.

Given the currently sluggish demand for residential real estate in India, the office sector provides some relief for real estate developers, given the declining vacancy levels and improving rents. With declining vacancies, superior quality buildings in CBDs, SBDs, and PBDs are likely to see maximum REITable assets.

Close to 283 million sq ft of office space in India is REITable. Currently, there are 901 REIT-worthy properties in India.

There is no doubt that REITs will provide access to highly lucrative assets, such as large-scale commercial properties and high-quality retail assets, that may be otherwise out of reach for individual investors. Once the first REIT listings go live in India, we will definitely see significantly increased institutional and retail investor participation in this market.

Ramesh Nair, CEO & Country Head, JLL India

Disclaimer: The opinions expressed within this article are the personal opinions of the author. The facts and opinions appearing in the article do not reflect the views of NDTV and NDTV does not assume any responsibility or liability for the same.

2,268 thoughts on “REITs in India-Opportunity Awaits”

  2. Thanks for the sensible critique. Me & my neighbor were just preparing to do a little research on this. We got a grab a book from our local library but I think I learned more from this post. I’m very glad to see such great info being shared freely out there.

    Reply

  11. I’m impressed, I have to admit. Genuinely rarely should i encounter a weblog that’s both educative and entertaining, and let me tell you, you may have hit the nail about the head. Your idea is outstanding; the problem is an element that insufficient persons are speaking intelligently about. I am delighted we came across this during my look for something with this.

    Reply

  57. I have to point out my respect for your generosity for persons who must have help with the content. Your real commitment to passing the message all through became rather informative and have surely permitted guys and women like me to realize their dreams. Your amazing warm and friendly publication entails so much a person like me and substantially more to my office workers. Thanks a ton; from each one of us.

    Reply

  60. I not to mention my pals were looking at the excellent secrets and techniques from your web page and so then I had an awful suspicion I never thanked the website owner for those tips. Those men are actually joyful to study them and have actually been tapping into these things. I appreciate you for simply being so accommodating and then for settling on this sort of quality subject areas millions of individuals are really eager to know about. Our honest apologies for not saying thanks to earlier.

    Reply

  62. My spouse and i ended up being so joyful that Emmanuel could carry out his investigation out of the ideas he acquired using your site. It’s not at all simplistic to simply choose to be handing out facts which often men and women may have been making money from. And we also take into account we have the blog owner to appreciate for that. All the explanations you made, the simple blog menu, the friendships you make it possible to engender – it is everything extraordinary, and it’s really making our son and our family know that this article is pleasurable, and that’s rather serious. Thank you for all the pieces!

    Reply

  63. I and also my buddies were found to be digesting the best suggestions found on your site while all of a sudden developed an awful suspicion I never thanked the site owner for those tips. All of the young men are already as a result glad to learn them and have now unquestionably been using those things. We appreciate you really being so helpful and also for pick out varieties of helpful subject matter most people are really needing to discover. My honest regret for not expressing appreciation to you earlier.

    Reply

  65. My husband and i were so contented Albert managed to round up his analysis through your ideas he made through your web pages. It’s not at all simplistic to simply choose to be giving freely solutions which often many people might have been trying to sell. So we fully understand we have the blog owner to appreciate for that. The main illustrations you made, the easy web site navigation, the relationships you can help create – it’s everything extraordinary, and it is letting our son and the family feel that the content is thrilling, which is certainly truly serious. Many thanks for the whole thing!

    Reply

  82. I intended to compose you the very small word in order to thank you over again with the fantastic tricks you’ve provided here. This has been so strangely generous of you in giving freely what most people would’ve advertised for an electronic book in making some dough for themselves, most importantly considering the fact that you might have tried it if you ever wanted. Those points additionally worked as the good way to know that other individuals have similar interest like my personal own to see way more in regard to this condition. I know there are several more fun opportunities in the future for individuals that scan through your blog.

    Reply

  84. I must point out my passion for your kindness giving support to persons who have the need for help on this important matter. Your real dedication to getting the message throughout came to be exceptionally interesting and has all the time helped ladies just like me to reach their ambitions. Your personal valuable suggestions entails this much to me and further more to my peers. Thanks a ton; from all of us.

    Reply

  86. I definitely wanted to post a brief word to say thanks to you for some of the splendid information you are showing on this website. My time-consuming internet investigation has at the end been honored with useful tips to talk about with my best friends. I ‘d believe that we visitors actually are extremely blessed to exist in a superb community with many awesome individuals with useful solutions. I feel very happy to have discovered your webpage and look forward to really more thrilling times reading here. Thank you once again for a lot of things.

    Reply

  92. Thank you for all your efforts on this website. My niece really likes going through research and it’s really obvious why. My spouse and i notice all of the compelling medium you render useful guides by means of the web site and even inspire response from other people on this situation then my princess is without a doubt learning a whole lot. Take pleasure in the remaining portion of the year. You have been doing a stunning job.

    Reply

  95. My spouse and i ended up being absolutely joyful that Louis could do his homework through the entire precious recommendations he discovered from your web site. It’s not at all simplistic just to find yourself giving for free helpful hints that many some other people have been selling. And we consider we’ve got the blog owner to appreciate because of that. All the illustrations you have made, the easy blog menu, the relationships your site help to create – it’s everything impressive, and it is helping our son in addition to our family know that that subject matter is brilliant, which is certainly extraordinarily pressing. Many thanks for all!

    Reply

  96. I wanted to put you this bit of note so as to thank you very much once again on your splendid strategies you’ve contributed on this page. This is certainly remarkably open-handed with you to supply unhampered precisely what a number of people might have sold as an electronic book in order to make some cash for their own end, primarily given that you might well have tried it in the event you wanted. These things likewise served as a good way to fully grasp that the rest have the same dream much like my very own to grasp great deal more around this matter. I think there are many more fun opportunities in the future for many who check out your website.

    Reply

  97. I happen to be commenting to make you be aware of of the cool discovery my wife’s girl found reading your site. She figured out plenty of things, most notably how it is like to possess a very effective teaching mindset to have many others smoothly grasp specific tricky subject matter. You undoubtedly did more than people’s expected results. Thanks for rendering such practical, safe, revealing and unique thoughts on your topic to Evelyn.

    Reply

  98. I not to mention my guys have been analyzing the best secrets on your web page and so all of the sudden I had a horrible suspicion I had not expressed respect to you for those techniques. All the ladies were happy to study all of them and have quite simply been having fun with these things. Many thanks for indeed being very considerate as well as for having varieties of really good themes millions of individuals are really desperate to understand about. My honest regret for not saying thanks to earlier.

    Reply

  101. [url=https://clomidpill.com/]clomid generic[/url] [url=https://antabusedsuf.com/]antabuse 250 mg[/url] [url=https://propecialab.com/]buy propecia[/url] [url=https://wellbutrinlab.com/]buy wellbutrin[/url] [url=https://doxycycline360.com/]doxy 100[/url]

    Reply

  111. My spouse and i got now joyful that Peter managed to round up his basic research through your ideas he made from your own site. It’s not at all simplistic to just happen to be releasing secrets and techniques that many men and women have been making money from. And we all discover we have the website owner to appreciate for this. The specific illustrations you’ve made, the straightforward blog menu, the friendships you assist to instill – it is everything incredible, and it’s making our son in addition to us feel that this concept is interesting, which is rather serious. Thanks for all!

    Reply

  126. I simply needed to thank you very much yet again. I am not sure the things that I could possibly have achieved in the absence of the recommendations shared by you directly on such area of interest. This was a very alarming setting for me, but discovering this specialised form you treated it took me to cry for contentment. I am thankful for your help as well as wish you really know what a great job you are always carrying out instructing many others using a web site. I am certain you have never encountered all of us.

    Reply

  135. I simply desired to appreciate you yet again. I do not know the things that I could possibly have achieved in the absence of the concepts provided by you about such a topic. It actually was a very troublesome concern in my view, nevertheless being able to view a new specialised manner you solved that made me to weep over happiness. Extremely thankful for this advice and even pray you really know what a powerful job you’re putting in instructing many people thru your blog. Probably you haven’t met any of us.

    Reply

  339. I’ve been exploring for a little bit for any high-quality articles or weblog posts in this kind of house . Exploring in Yahoo I ultimately stumbled upon this site. Studying this info So i am glad to express that I’ve a very excellent uncanny feeling I discovered exactly what I needed. I most unquestionably will make sure to do not put out of your mind this site and give it a glance on a constant basis.

    Reply

  393. [url=https://prednisonestrd.com/]prednisone[/url] [url=https://femalepinkviagra.com/]female pink viagra[/url] [url=https://anafranilmed.com/]anafranil 25 mg tablet[/url] [url=https://prozacflx.com/]where can i buy prozac uk[/url] [url=https://toradolrx.com/]toradol cost[/url]

    Reply

  432. Знаете ли вы?
    Акадийка много раз становилась первой.
    Первая абсолютная чемпионка турнира Большого шлема похоронена в могиле для бедняков.
    Будущего чемпиона Европы по боксу в детстве одновременно дразнили «хохлом» и «москалём».
    Один из старейших музеев Амстердама находится в церкви на чердаке.
    Новый вид пауков-скакунов был назван по имени писателя в честь юбилея его самой известной книги о гусенице.

    http://0pb8hx.com/

    Reply

  437. Знаете ли вы?
    Копенгагенский собор пришлось выстроить заново после визита англичан в 1807 году.
    Министр социального обеспечения Израиля однажды назвала почти всех выходцев из СССР своими клиентами.
    По выбору Утёсова дорога на Берлин шла то через Минск, то через Киев.
    Первая председательница Верховного суда Татарии молчала по поводу своей службы в НКВД.
    «Бикини» для лица помогает китаянкам уберечь кожу от медуз и загара.

    http://www.0pb8hx.com/

    Reply

  442. Знаете ли вы?
    «Бикини» для лица помогает китаянкам уберечь кожу от медуз и загара.
    Кустурица пропустил получение «Золотой ветви» в Каннах, так как любит друзей больше, чем церемонии награждения.
    Российских легкоалетов могут сурово наказать за действия чиновников от спорта.
    Врач на карантине спел созданную для фильма песню Высоцкого «Давно смолкли залпы орудий».
    По выбору Утёсова дорога на Берлин шла то через Минск, то через Киев.

    http://0pb8hx.com/

    Reply

  451. [url=https://amoxicillintz.com/]amoxicillin 1000 mg[/url] [url=https://sumycin365.com/]buy sumycin online[/url] [url=https://kamagra360.com/]kamagra pills[/url] [url=https://effexor24.com/]effexor venlafaxine[/url] [url=https://clonidinemed.com/]clonidine 0.1 mg tablet[/url]

    Reply

  465. Знаете ли вы?
    Альбом «Битлз», признанный одним из величайших в истории музыки, ругали за искусственность и «перепродюсированность».
    Во время немецкой оккупации Украины радио на украинском языке вещало из Саратова и Москвы.
    Врач на карантине спел созданную для фильма песню Высоцкого «Давно смолкли залпы орудий».
    Член Зала хоккейной славы готов был играть где угодно, лишь бы не переходить в тренеры.
    «Голова крестьянина» хранилась в доме у немецкой актрисы.

    http://arbeca.net

    Reply

  501. [url=https://flomaxmed.com/]buy flomax[/url] [url=https://colchicinetab.com/]colchicine pill[/url] [url=https://albuterolmd.com/]buy albuterol inhaler[/url] [url=https://sildenafiltb.com/]sildenafil mexico pharmacy[/url]

    Reply

  513. [url=https://amitriptyline24.com/]amitriptyline 25 mg without prescription[/url] [url=https://zovirax.us.com/]generic for zovirax[/url] [url=https://domperidone.us.com/]where can i buy motilium in uk[/url] [url=https://prednisolone.us.org/]prednisolone 6131463705[/url] [url=https://prazosin.us.com/]prazosin coupon[/url] [url=https://flomax.us.com/]flomax .4mg[/url]

    Reply

  526. Знаете ли вы?
    Рассказ английского писателя был экранизирован в СССР раньше, чем опубликован его английский оригинал.
    Зелёный чай может быть розовым.
    Карьера не помешала фарерскому футболисту играть в гандбол, записать три музыкальных альбома, издать пять книг и сняться в восьми фильмах.
    «Голова крестьянина» хранилась в доме у немецкой актрисы.
    Сооснователь и глава Социал-демократической партии Великобритании стал бароном.

    http://arbeca.net

    Reply

  534. Знаете ли вы?
    Подруга и последовательница Льва Толстого уже в детстве ходила босиком и отвергала нарядную одежду.
    Иногда для поддержки экономики деньги «разбрасывают с вертолёта».
    Клирик-саксонец стать папой римским не захотел, а патриархом Севера не смог.
    Сын политика-пьяницы помог принять сухой закон в своей провинции.
    Персонажу французской комедии о Фантомасе советские подростки подражали всерьёз.

    arbeca

    Reply

  535. Знаете ли вы?
    Первый в мире короткоствольный револьвер (англ.)русск. с откидным барабаном стал символом кинонуара.
    Иракский физрук получил мировую известность под псевдонимом «ангел смерти».
    Во время немецкой оккупации Украины радио на украинском языке вещало из Саратова и Москвы.
    Преподаватель нескольких университетов, попавший в сталинские лагеря, и там умудрился обучать математике на куске мыла.
    На идеологию национал-социализма оказали влияние русские эмигранты.

    http://arbeca.net/

    Reply

  546. You are a great parent. You can tell just by looking at how thoughtful your kids are (A two-for-one compliment)
    I hope you are <a href="https://op-kr.com&quot; title="오피" alt="오피" target="_blank">오피</a>
    of yourself, because I am!
    Our family/school/community/church is better because you are part of it.

    Reply

  560. I’m really loving the theme/design of your blog. Do you ever run into any internet browser compatibility problems? A few of my blog audience have complained about my blog not operating correctly in Explorer but looks great in Chrome. Do you have any advice to help fix this issue?

    Reply

  573. [url=https://cymbaltaduloxetine.com/]buy cymbalta 30 mg online[/url] [url=https://doxycycline36.com/]doxycycline antibiotic[/url] [url=https://celebrexcelecoxib.com/]celebrex 300[/url] [url=https://hydroxychloroquine.us.org/]plaquenil uk[/url] [url=https://isotretinoinacutane.com/]buy accutane[/url] [url=https://finpecia911.com/]buy finpecia[/url] [url=https://baclofen24.com/]baclofen 10 mg tablets[/url] [url=https://amoxicillinz.com/]buy amoxicillin[/url] [url=https://silagra24.com/]buy silagra 50 mg[/url] [url=https://priligytab.com/]priligy 30 mg canada[/url]

    Reply

  616. [url=https://levitratab.com/]levitra pills in south africa[/url] [url=https://toradoliv.com/]toradol tabs[/url] [url=https://avanafill.com/]3131 avana[/url] [url=https://clomid150.com/]price of clomid in australia[/url] [url=https://stromectol1.com/]ivermectin 400 mg brands[/url]

    Reply

  629. [url=https://prednisolone911.com/]medication prednisolone 5mg[/url] [url=https://zoloft360.com/]zoloft 100mg best price[/url] [url=https://chloroquineav.com/]chloroquine phosphate buy[/url] [url=https://seroquel50.com/]seroquel 50 mg sleep[/url] [url=https://gabapentin.us.com/]where to buy gabapentin online[/url]

    Reply