Mumbai, Aug 25
The Real Estate Investment Trust (REIT) market in India has been witnessing significant resilience and growth, marked by expanding portfolios, stable occupancy, and healthy Weighted Average Lease Expiry (WALE) levels, signalling strong fundamentals and investor confidence, according to a new report released on Monday.
REITs are investment instruments that allow investors, both individual and institutional, to participate in the real estate sector, without directly owning properties.
The real estate sector’s strong fundamentals, urbanization trends, sustained corporate leasing demand, and supportive regulation has been contributing to continued growth in the segment. Moreover, the spurt in investor interest amid growing confidence in yield-generating assets is leading to a good growth in volumes of REITs, said the report by ICRA Analytics.
“The growth in REITs underscores renewed institutional and retail investor appetite for commercial real estate-backed securities, supported by uptick in office demand and resilient rental yields. We believe Indian REITs remain a compelling, income-generating asset class backed by high-quality commercial real estate for institutional and retail investors in India in the coming days,” said Madhubani Sengupta, head-knowledge services, ICRA Analytics.