How do you see the REITs growing in India in the coming quarters? Do you see a huge potential out there?

In India REITs have just about made their presence felt in the last 18-20 months. However, one thing is certain that the response to the REITs has been good among the investors and also the performance of these RETIs has been quite impressive in stock market return terms. Now Jones Lang Lasalle has come out with its estimates for the Indian REITs market which it expects to grow exponentially. At least, the potential is out there.

If you go by the projections made by JLL, it does like it would be advantage REITs in the coming years. JLL estimates that currently a total of $36 billion worth of real estate is suitable to be listed under REITs. However, the number of listed REITs is just 3 leaving a huge potential ahead. India currently has 3 listed REITs in 2 years viz. Embassy Office Parks, Mindspace Business Parks and the recently listed Brookfield India Real Estate Trust.

REITs have done well in India till date and that is largely thanks to the quality of promoters in all the 3 cases. These REITs have come from very reputed names. JLL estimates that potential space of 284 million SFT can be securitised having an estimated value of $36 billion. REITs are essentially tax-efficient pass-through structures that are permitted to hold commercial realty in India as a portfolio of assets, for investors to participate in.