Tag: REITs

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Budget 2026: Fast-Tracking CPSE Real Estate Recycling with REITs

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…

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India’s REIT Market Surpasses ₹2.3 Lakh Crore Asset Value

NEW DELHI: India’s Real Estate Investment Trust (REIT) market has developed into a significant institutional asset class, with a gross asset value (GAV) reaching approximately ₹2.3 lakh crore and the equity market capitalisation nearing ₹1.66 lakh crore as of September 30, 2025, as reported by Anarock Capital. Despite only about 32% of India’s REIT-eligible commercial stock being listed, the domestic REIT market has outperformed Hong Kong in market capitalisation, highlighting rapid growth since the first listing in 2019. Following Knowledge Realty Trust’s listing in August 2025, India now boasts five listed REITs that manage a combined portfolio of around 176…

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Crisil: REIT Gross Asset Value to Surge 35-40% This Fiscal

NEW DELHI: According to Crisil Ratings, the gross asset value (GAV) of domestic real estate investment trusts (REITs) is projected to rise by 35-40% by the end of fiscal 2027, up from September 2025, driven by new asset additions and the introduction of another REIT. Stable rental income growth, along with diversification and regulated leverage, will support steady credit profiles. REITs generally grow their asset base either through the development of new projects—limited to 20% by regulations—or by acquiring existing operational assets. Gautam Shahi, director of the firm, stated, “Currently, under-construction assets make up just 5% of total GAV for…

IndustryLatest Stories

Two REITs Set for Debt Sales This Month, Sources Say

MUMBAI: Two Indian real estate investment trusts (REITs) are preparing to enter the bond market in the coming days, concluding a year characterized by record issuances from income-generating real estate operators, according to sources familiar with the matter. Merchant bankers note that bonds generally come with fewer restrictions compared to bank loans, enabling trusts to allocate funds across multiple properties. Knowledge Realty Trust and Embassy Office Parks REIT aim to collectively raise around 21 billion rupees (approximately $232.8 million) through shorter-tenor debt instruments. Knowledge Realty Trust intends to secure 16 billion rupees through bonds maturing within four years. Meanwhile, Embassy…

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PFRDA Simplifies Investment Rules for REITs and InvITs

Representative AI image NEW DELHI: The Pension Fund Regulatory and Development Authority (PFRDA) has clarified the framework for National Pension System (NPS) funds to invest in Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) through a revised master circular on investment guidelines issued on December 10, 2025. PFRDA has established new exposure limits to govern this investment. Combined investments in REIT and InvIT debt instruments and units must not exceed 3% of a pension fund’s total assets under management. Furthermore, pension funds cannot hold more than 15% of the outstanding debt instruments from a single REIT or InvIT,…

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Sebi Expands Strategic Investor Definition for REITs, InvITs

NEW DELHI: The Securities and Exchange Board of India (Sebi) has expanded the definition of “strategic investor” for Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs), aiming to enhance investor participation in their public offerings. This revised criteria will facilitate capital attraction for these trusts, promote flexibility, and overall ease of business operations. Sebi identified that the previous definition of strategic investor was too limited, excluding significant institutional investors like pension funds, provident funds, and insurance funds. While these entities are active in REITs and InvITs due to their interest in long-term, stable income-generating assets, they were not…

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Amfi May Label REITs as Equity in January 2026 Rejig

MUMBAI: According to Nuvama Alternative & Quantitative Research, Knowledge Realty Trust (KRT), Embassy Office Parks, Mindspace Business Parks, Nexus Select Trust, and Brookfield may be classified under equity categories in the upcoming reclassification by the Association of Mutual Funds in India (AMFI) scheduled for January 2026. Recently, the Securities and Exchange Board of India (SEBI) redefined Real Estate Investment Trusts (REITs) as ‘equity-related instruments’ to encourage greater participation from mutual funds. If REITs are moved to the equity categories by the mutual fund industry body, KRT and Embassy may be categorized as mid-caps, while Mindspace, Nexus, and Brookfield could be…

IndustryLatest Stories

SEBI to Engage Stakeholders for REITs Inclusion in Indices

NEW DELHI: The Securities and Exchange Board of India (Sebi) plans to collaborate with industry stakeholders to include Real Estate Investment Trusts (REITs) in market indices, a step that is anticipated to significantly enhance liquidity for these instruments, as stated by chairman Tuhin Kanta Pandey on Friday. Speaking at the National Conclave on REITs and InvITs-2025, Pandey remarked, “Sebi will work with all stakeholders to facilitate the inclusion of REITs in indices.” REITs manage and operate real estate, providing investors an opportunity to invest in high-value properties while earning dividend income that can increase capital over time. Once included in…

IndustryLatest Stories

SEBI Considers Expanding Investment Options for REITs, InvITs

BENGALURU: The chairperson of India’s market regulator has announced plans to expand liquid mutual fund options for Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) to enhance their participation in the market. “We are reviewing a proposal to increase the accessible liquid mutual fund schemes for REITs and InvITs, with a focus on protecting investor interests,” said Tuhin Kanta Pandey, chairman of the Securities and Exchange Board of India (SEBI). Furthermore, Pandey noted that SEBI will work towards incorporating REITs into market indices, as outlined in his speech on the regulator’s website last Friday. This initiative follows SEBI’s…

IndustryLatest Stories

SEBI Reclassifies REITs as Equity, Expands Investor Access

NEW DELHI: To enhance participation in Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs), the Securities and Exchange Board of India (SEBI) has approved amendments to the SEBI (Mutual Funds) Regulations, 1996, reclassifying REITs as “equity” while maintaining InvITs under the “hybrid” category for mutual fund and specialized investment fund investments. The decision, made during SEBI’s board meeting, is expected to facilitate greater mutual fund investment in REITs by including them in equity indices. The regulator noted that these changes followed public consultations in April 2025 and extensive discussions with industry stakeholders. This adjustment aligns domestic regulations with…