Why REITs are Gaining Popularity over Traditional Real Estate Investments

Experts discuss the benefits of REITs over physical real estate properties

ReitsReal Estate InvestmentsMumbaiVccircle Family Office SummitWelspun OneSattvaOm Kothari GroupAltern CapitalReal Estate MumbaiJul 30, 2024

Why REITs are Gaining Popularity over Traditional Real Estate Investments
Real Estate Mumbai:The real estate landscape is witnessing a significant shift, with Real Estate Investment Trusts (REITs) gaining popularity over traditional physical real estate investments. At the VCCircle Family Office Summit 2024 in Mumbai, a panel of experts discussed the benefits of REITs and how they are providing a run for their money to the traditional asset class.

Girish Singhi, Director of Welspun One, Adrija Agarwal, Co-Founder of Sattva, Siddharth Kothari, Director of Om Kothari Group, and Navin Dhanuka, Founder of Altern Capital, were among the panelists who shared their insights on the topic.

According to the experts, real estate properties will always retain their sheen due to the 'touch and feel' value they provide. However, REITs are offering a more attractive option for investors who want to diversify their portfolio and earn steady returns.

REITs allow individuals to invest in a diversified portfolio of properties without having to physically own them. This provides a lower-risk investment option, with the potential for higher returns. Additionally, REITs offer a higher level of liquidity, making it easier for investors to buy and sell their shares.

The panelists also discussed the benefits of REITs in terms of professional management, transparency, and regulatory compliance. With REITs, investors can be assured of a well-managed investment portfolio, with regular updates on performance and returns.

While traditional real estate investments will always have an emotional value attached to them, REITs are providing a more attractive option for investors who want to make informed decisions based on market trends and data.

About Welspun One Welspun One is a leading real estate development company that offers a range of properties, including residential, commercial, and industrial spaces.

About Sattva Sattva is a real estate consulting firm that provides end-to-end solutions for property investors and developers.

About Om Kothari Group Om Kothari Group is a diversified business conglomerate with interests in real estate, hospitality, and education.

About Altern Capital Altern Capital is a private equity firm that invests in alternative assets, including real estate and infrastructure.

Frequently Asked Questions

What is the main advantage of REITs over traditional real estate investments?

REITs offer a lower-risk investment option with the potential for higher returns, along with a higher level of liquidity.

Why do real estate properties retain their sheen?

Real estate properties retain their sheen due to the 'touch and feel' value they provide.

What is the benefit of professional management in REITs?

Professional management in REITs provides a well-managed investment portfolio, with regular updates on performance and returns.

What is the aim of the VCCircle Family Office Summit?

The aim of the VCCircle Family Office Summit is to provide a platform for experts to discuss the latest trends and opportunities in the real estate industry.

How do REITs offer diversification benefits to investors?

REITs offer diversification benefits to investors by allowing them to invest in a diversified portfolio of properties without having to physically own them.

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