+
InvITs & REITs Fundraising Skyrockets in FY24
ECONOMY & POLICY

InvITs & REITs Fundraising Skyrockets in FY24

In the dynamic landscape of India's real estate and infrastructure sectors, Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs) have emerged as compelling investment avenues. The fiscal year 2023-24 witnessed an unprecedented surge in fundraising through InvITs and REITs, reaching a staggering Rs. 17,116 crore. This meteoric rise underscores the growing confidence of investors in these investment vehicles, driven by promising returns and a conducive regulatory environment.

InvITs and REITs are innovative financial instruments that enable retail and institutional investors to participate in the infrastructure and real estate sectors, respectively, without directly owning the underlying assets. They pool funds from multiple investors to invest in income-generating assets, such as toll roads, power transmission lines, commercial real estate, and more. This diversification of assets mitigates risk while offering attractive yields, making InvITs and REITs an attractive proposition for both conservative and yield-seeking investors.

The exponential growth in fundraising reflects the robust performance of existing InvITs and REITs, which have consistently delivered steady returns amidst market volatility. Moreover, the favourable tax treatment accorded to these investment vehicles enhances their attractiveness, particularly for high-net-worth individuals and institutional investors.

A key driver behind this surge in fundraising is the growing demand for infrastructure development in India. With the government's renewed focus on infrastructure projects across sectors such as transportation, energy, and telecommunications, there is a pressing need for long-term capital investment. InvITs have emerged as a preferred financing option for infrastructure developers, providing them with access to a diversified investor base and long-term capital at competitive rates.

Similarly, the commercial real estate market in India is witnessing a revival, driven by robust demand for office spaces and retail outlets. REITs offer investors an opportunity to gain exposure to this burgeoning sector while enjoying stable rental income and potential capital appreciation.

In conclusion, the exponential increase in fundraising through InvITs and REITs in FY24 underscores their growing significance in India's investment landscape. With their ability to generate steady income streams and provide diversification benefits, InvITs and REITs are poised to play a pivotal role in driving capital formation and fuelling economic growth in the years to come.

In the dynamic landscape of India's real estate and infrastructure sectors, Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs) have emerged as compelling investment avenues. The fiscal year 2023-24 witnessed an unprecedented surge in fundraising through InvITs and REITs, reaching a staggering Rs. 17,116 crore. This meteoric rise underscores the growing confidence of investors in these investment vehicles, driven by promising returns and a conducive regulatory environment. InvITs and REITs are innovative financial instruments that enable retail and institutional investors to participate in the infrastructure and real estate sectors, respectively, without directly owning the underlying assets. They pool funds from multiple investors to invest in income-generating assets, such as toll roads, power transmission lines, commercial real estate, and more. This diversification of assets mitigates risk while offering attractive yields, making InvITs and REITs an attractive proposition for both conservative and yield-seeking investors. The exponential growth in fundraising reflects the robust performance of existing InvITs and REITs, which have consistently delivered steady returns amidst market volatility. Moreover, the favourable tax treatment accorded to these investment vehicles enhances their attractiveness, particularly for high-net-worth individuals and institutional investors. A key driver behind this surge in fundraising is the growing demand for infrastructure development in India. With the government's renewed focus on infrastructure projects across sectors such as transportation, energy, and telecommunications, there is a pressing need for long-term capital investment. InvITs have emerged as a preferred financing option for infrastructure developers, providing them with access to a diversified investor base and long-term capital at competitive rates. Similarly, the commercial real estate market in India is witnessing a revival, driven by robust demand for office spaces and retail outlets. REITs offer investors an opportunity to gain exposure to this burgeoning sector while enjoying stable rental income and potential capital appreciation. In conclusion, the exponential increase in fundraising through InvITs and REITs in FY24 underscores their growing significance in India's investment landscape. With their ability to generate steady income streams and provide diversification benefits, InvITs and REITs are poised to play a pivotal role in driving capital formation and fuelling economic growth in the years to come.

Related Stories

Gold Stories

Next Story
Infrastructure Urban

Infrastructure Opportunity Outlook by IMPACCT.Info

India’s infrastructure pipeline is witnessing dynamic activity across stages — from immediate bidding to future planning. IMPACCT segments these into three categories: Immediate, 3–6 Month, and Future Opportunities, enabling businesses to identify, prepare, and participate in high-value tenders and projects across sectors.To read full article Click Here ..

Next Story
Real Estate

Glass, Reframed!

Glass façades, quintessential aesthetic building envelopes globally, have been widely adopted in India as well. But when the focus is high-performance building systems that deliver energy efficiency, comfort and architectural identity, glass isn’t the only preference. Combination solutions, involving glass and some other material, improve façade outcomes. Some combinations come at comparable prices, some at a higher price. Here is a selection of performance-oriented solutions...To read the full story Click Here ..

Next Story
Infrastructure Urban

Beyond Building Faster

India’s cities are expanding at an unprecedented pace, bringing new infrastructure and development opportunities while also intensifying challenges around mobility, public spaces, liveability and supporting infrastructure. The question, therefore, is not simply whether India can build faster, but whether it can build cities that work better.At a CW webinar, Are We Designing Better Cities – or Just Building Faster?, moderator Ar. Samir Shaikh, Founding Principal, AR&UD Studio, brought together perspectives from design, development, master planning and technology...To read the full artic..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code