Indian REITs Yield 6-7.5%, Outperforming US, Singapore, and Japan: CREDAI-Anarock Report
Indian Real Estate Investment Trusts (REITs) are generating an average yield of 6-7.5% for unitholders, which is significantly higher than many mature markets, including the US, according to a report by CREDAI and Anarock. This makes Indian REITs an attractive investment option for both domestic and international investors.
CREDAI, the apex body of Indian real estate developers, and property consultant Anarock released the report 'Indian REITs - A Gateway to Institutional Real Estate' at an event. The report provides a comprehensive overview of the Indian REITs market and highlights its potential for growth.
At present, there are five listed REITs in India: Brookfield India Real Estate Trust, Embassy Office Parks REIT, Mindspace Business Parks REIT, Nexus Select Trust, and Knowledge Realty Trust. These REITs are primarily focused on office and retail real estate. Nexus Select Trust is backed by rent-yielding retail real estate (shopping malls), while the other four are office REITs.
The high yields offered by Indian REITs are a result of the strong demand for quality office and retail spaces in key cities. The report suggests that the Indian REITs market is poised for significant growth in the coming years, driven by increasing institutional investment and a favorable regulatory environment.
The report also highlights the potential for further diversification in the Indian REITs market, with opportunities in sectors such as residential, hospitality, and healthcare. This diversification could attract a broader range of investors and further enhance the market's appeal.
Despite the positive outlook, the report notes that the Indian REITs market still faces some challenges, including regulatory hurdles and the need for more transparency. However, the overall sentiment remains optimistic, with stakeholders confident in the market's long-term potential.
In summary, the CREDAI-Anarock report underscores the strong performance of Indian REITs and their potential to outperform mature markets. For investors looking for high-yield opportunities in the real estate sector, Indian REITs present a compelling proposition.
