Real Estate Investment Trust (REIT)

What is the future of REIT in India?

Real Estate Investment Trusts (REIT) are a lot like mutual funds in that they primarily enable investments in the real estate industry where people purchase units instead of properties and earn returns on their investments. This is mainly for those who merely want to make investments in the real estate market and aren’t seeking to buy any houses. These regulations provide the basis for registering and regulating REITs in the nation. To support the widespread adoption of REITs and the future of REIT in India, the government and authorities have been taking significant steps.

Real Estate market in India post-Covid

The initial worries about a slowdown in the economy and uncertainty caused by COVID have significantly diminished by this point. The market, nevertheless, recovered due to some substantial improvements in the global epidemic era. The first half of 2020 has seen a 49% reduction in sales in the seven largest metropolitan areas of India’s real estate. Incomparably, COVID-19 altered how firms operate worldwide.

Businesses were closed, and the entire globe came to a stop. The pandemic’s significant impact on the housing market is not surprising. During the March shutdown, real estate sales dropped, and only recently have construction activities begun to pick up again in several states.

Real Estate Market in Hyderabad post-Covid

The covid-19 worldwide epidemic is currently front and center in political, social, financial, and health discourse, and it will probably stay that way for a while. The COVID-19 influence on real estate leads to the future of REIT in the Indian market in Hyderabad would have both short and long-term effects on all of the key players in the whole real estate supply chain.

Although it might be referred to as a real estate price adjustment, it is true that before 19, land prices in Hyderabad would decrease. National Real Estate Development Council (NAREDCO) specialists even foresaw a 10–20% decline in prices nationwide.

REIT Adoption in India so far

India had 4 registered REITs as of March 2021, of which three were publicly traded.
In India, three REITS are listed:

● Mindspace Business Parks REIT
● Brookfield India Real Estate Trust
● Embassy Office Parks REIT

The SEBI decreased the threshold capital investment in a REIT in 2021 from Rs 50,000 to Rs 10,000–15,000 to increase availability in REITs and encourage more listings. The market regulator also reduced the 200-unit selling lot cap to only one unit following approving the change to the SEBI (Real Estate Investment Trusts) Regulations, 2014.

Future of REIT in India with an impact

The nearly 5 million square foot office REIT portfolio or the future of REIT in India is made up of, Hyderabad, Mumbai Chennai, and Pune, Additionally, over the long term, it is expected that REITs in India will include a variety of asset classes. The popularity of cloud-based services has accelerated in addition to Covid-19 due to developments in Industry 4.0, Big Data, and the Internet of Things. The need for data centers will rise as a result of these.

Lastly, the key to secure investments may be a REIT or a full-fledged proper investment in any property. Investing in the initial stage of any project is beneficial as it is sold at cheaper rates and reaps profits as the value gets appreciated with time. NS Homes is a prime example of easily appreciable property. Secure your investments through Flivv and enjoy returns at the earliest.

Flivv Realty, being one of the stakeholders in the Real Estate industry focuses on securing the interest of the people. Hence, we urge you to choose wisely before making investing decisions. Avail free consultation and contact us to explore newer options.