NEW DELHI: Finance Minister Nirmala Sitharaman announced that the Union government will enhance efforts to monetize real estate assets owned by central public sector enterprises (CPSEs) through dedicated Real Estate Investment Trusts (REITs) during the presentation of the Union Budget 2026-27 on February 1, 2026.
Sitharaman emphasized that market-linked instruments play a crucial role in unlocking value from public assets. She mentioned that REITs have proven to be effective for asset monetization and that the government intends to expedite the recycling of CPSE-owned real estate through these structures. The objective is to improve capital efficiency and generate ongoing revenue streams for public enterprises.
In the last decade, the government has launched several initiatives to improve public infrastructure financing, including the development of Infrastructure Investment Trusts (InvITs) and REITs, which have facilitated the acquisition of long-term institutional capital for infrastructure and income-generating assets.
Industry experts believe that this proposal could significantly enhance India’s listed real assets market. The Indian REITs Association (IRA) stated that dedicated CPSE REITs would facilitate quicker capital recycling, strengthen the balance sheets of public sector entities, and provide investors with access to stable, income-generating assets in a transparent and regulated environment.
“This proposal indicates a transition from passive ownership to proactive, market-driven asset management, unlocking long-term value from mature public assets and reallocating capital to new infrastructure projects,” the association noted.
Anuj Puri, chairman of Anarock Group, commented that the goal is to attract institutional capital while maintaining control over strategic assets. “This aligns with industry calls for clearer REIT taxation and broader participation, including smaller REITs. However, further clarity will depend on upcoming policy notifications that define the operational framework,” he stated.
Pradeep Aggarwal, founder and chairman of Signature Global (India), mentioned that a faster recycling of CPSE real estate assets via REITs, coupled with continued support for InvITs, would strengthen capital markets, enhance liquidity, and boost investor confidence in the real estate and infrastructure sectors.
