+
REIT, fractional ownership gaining momentum in commercial space
Real Estate

REIT, fractional ownership gaining momentum in commercial space

Indian REITs are primarily skewed toward IT-occupied assets. As the government prepares to disinvest in different classes of assets, these funds would gain more traction and REITs can become more broad-based, finds E Jayashree Kurup.

Commercial real estate is a popular segment for institutional investors owing to its tangible nature and steady returns. The current pandemic has opened gates to new technologies where the investors are adding real estate assets to their portfolios without the need of managing physical property. By allowing investors to own fractions of it, REIT has become an affordable option, further helping to mobilise money from many retail investors. 


A fractional model or REIT allows investors to invest in premium commercial properties and earn a monthly rental yield. Through REIT, buyers can now manage and sell income-generating assets on an entirely online platform through a fractional investment model. Such properties can generate good rental yields besides offering an extremely promising appreciation. 
 
The demand in the Indian real estate sector has always been outpacing the supply, especially in urban cities. REIT investments are witnessing a surge, especially in metro cities with IT professionals, which are mostly 85-95% tenanted, and even during the pandemic there were no significant exits from these properties. Since most of these are integrated complexes, the F&B outlets, food courts, and hotels in the complexes also contribute to the monthly income. 
 
Any domestic, foreign, retail, or institutional investor can purchase REIT units. One can buy shares of REITs like any other shares on the stock exchange, through demat accounts and the buying and selling can be done on NSE or BSE, upon listing. To sum up, REITs or fractional investments are lucrative as they can generate good rental yield if planned wisely. 
          

Click here to read more

Indian REITs are primarily skewed toward IT-occupied assets. As the government prepares to disinvest in different classes of assets, these funds would gain more traction and REITs can become more broad-based, finds E Jayashree Kurup. Commercial real estate is a popular segment for institutional investors owing to its tangible nature and steady returns. The current pandemic has opened gates to new technologies where the investors are adding real estate assets to their portfolios without the need of managing physical property. By allowing investors to own fractions of it, REIT has become an affordable option, further helping to mobilise money from many retail investors. A fractional model or REIT allows investors to invest in premium commercial properties and earn a monthly rental yield. Through REIT, buyers can now manage and sell income-generating assets on an entirely online platform through a fractional investment model. Such properties can generate good rental yields besides offering an extremely promising appreciation.  The demand in the Indian real estate sector has always been outpacing the supply, especially in urban cities. REIT investments are witnessing a surge, especially in metro cities with IT professionals, which are mostly 85-95% tenanted, and even during the pandemic there were no significant exits from these properties. Since most of these are integrated complexes, the F&B outlets, food courts, and hotels in the complexes also contribute to the monthly income.  Any domestic, foreign, retail, or institutional investor can purchase REIT units. One can buy shares of REITs like any other shares on the stock exchange, through demat accounts and the buying and selling can be done on NSE or BSE, upon listing. To sum up, REITs or fractional investments are lucrative as they can generate good rental yield if planned wisely.           Click here to read more

Next Story
Infrastructure Urban

Budget Proposal Aims to Boost Investments

The recent budget proposal has introduced measures designed to promote investments and generate job opportunities across various industries, as reported by the Economic Times. This initiative seeks to stimulate economic activity and strengthen the country's growth trajectory by encouraging both domestic and foreign investments. Key aspects of the proposal include targeted incentives for sectors poised for expansion, such as renewable energy, infrastructure, and technology. The government aims to create a more favorable investment climate by offering tax benefits, subsidies, and streamlined reg..

Next Story
Infrastructure Urban

Indian Financial System Resilient Amidst Challenges

The Reserve Bank of India (RBI) Deputy Governor M. Rajeshwar Rao has emphasized the robust nature of the Indian financial system despite global economic headwinds, according to Economic Times. Rao?s comments reflect confidence in the stability and resilience of India's financial sector amidst a backdrop of international economic uncertainties and financial volatility. Rao highlighted that India?s financial system is well-equipped to handle external shocks due to its solid regulatory framework and prudent risk management practices. The country?s banking sector has demonstrated resilience throug..

Next Story
Infrastructure Energy

SC Allows State Tax on Mines, Minerals

Opposition leaders have welcomed the Supreme Court's recent decision permitting states to levy taxes on mines and mineral-bearing lands, as reported. The ruling is seen as a significant victory for state governments seeking greater control and revenue from natural resource extraction within their jurisdictions. The Supreme Court?s decision empowers states to impose taxes on mining operations and mineral-rich lands, which could enhance their revenue streams and enable better management of local resources. This move is particularly important for states with substantial mineral resources, as it a..

Talk to us?