According to a latest report by a global real estate firm, Real Estate Investment Trusts (REITs) have much potential to encourage investments in the Indian Real estate sector. The report has been released by CBRE Group which is considered as the largest commercial real estate services and investment firm globally.
Releasing the report, Anshuman Magazine, Chairman of CBRE, India and South East Asia said, “REIT will not only allow consumers’ participation but also make investments come into the real estate sector,”
The report also revealed that Chennai has the right ingredients to sustain long-term investments, including availability of manpower, social and physical infrastructure. The infrastructure and policy initiatives of the state government are expected to augment supply for both residential and commercial segments.
Recently, Embassy Office Parks – a joint venture of U.S. private equity firm Blackstone Group and India-based Embassy Group have filed India’s maiden REIT with the Securities and Exchange Board of India (SEBI), proposing to raise over Rs 5,000 crore through this route.
The deal was done almost after four years since its notification and continuous effort by the central Government. Real Estate expert predicts, this REIT will be a potential game changer for the Indian real estate market that is hungry for liquidity boost.
Talking about REIT or Real Estate Investment Trust, it is a trust which owns and operates a portfolio of income-producing real estate. In this type of investment option, investors can put their money in large-scale properties and is open to everyone for buying stocks. Most REIT companies trade on major stock exchanges, and hence offer a number of benefits to investors. With this development, the Indian real estate market will get a boost and reach to the next level.