[INDIA REAL ESTATE NEWS] Good morning everyone I am Rumi Dhar from Kama Group.|
Here I have important INDIA real estate news to share with you which is as mention under.
The future of real estate will be characterised by an increase in smaller investments. Even
before the pandemic, new and smaller retail investors were looking for affordable options in
the light of rising real estate prices. This interest in smaller investments has been exacerbated
by the pandemic.
At such a time, the Securities and Exchange Board of India (SEBI) has reduced the minimum
application value for Real Estate Investment Trusts (REITs) to Rs 10,000 to 15,000 from
Rs 50,000, a decision that’s likely to open the market for many small and retail investors.
India had its first REIT listing in early 2019. Since then, REITs have emerged as one of the
most viable investment options. Even as returns from some other stable investment avenues
remain uncertain in the wake of COVID-19, REITs continue to perform well because 80
percent of their underlying assets need to be operational and income-generating.
Once the office market emerges out of the pandemic, it is likely to be lucrative as ever.
While there may be some pressure on rental cashflows in the short term, given that India
continues to be a top global IT outsourcing destination, office real estate will continue to
be a resilient, low-risk and high-return asset class. REITs then will gain as much preference
as equities or mutual funds or more as a much safer investment option.
One critical factor that helps to maintain a positive outlook for REITs is the inherent strength
of commercial real estate in the country. About 50 percent of Grade A office space is REIT-
able stock, and office stock is set to touch 1 billion square feet in six to eight years. We can
expect almost 100 million sq. ft. of space to be listed on the Indian stock exchanges in the
next two years.
Read more at:https://www.moneycontrol.com/news/business/real-estate/how-sebis-new-norms-for-reits-will-make-them-a-preferred-investment-option-for-small-investors-7130311.html
Have a nice day