+
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.

Next Story
Infrastructure Urban

CJ Logistics’ Global CEO visits India to align growth strategy

Jonathan Song, newly appointed CEO of the Global Business Division at South Korea-based CJ Logistics, concluded a strategic three-day visit to India from July 29 to 31, reinforcing the company’s long-term commitment to the market through its subsidiary, CJ Darcl Logistics Ltd. Mr Song held high-level discussions with the CJ Darcl leadership and key customers to understand India’s evolving logistics needs, identify synergy areas, and enhance business alignment. His visit highlighted the strategic significance of India in CJ Logistics’ global network, especially amid the country’s g..

Next Story
Real Estate

Max Towers secures five star rating in safety audit by British Council

Max Estates, a leading NCR-based real estate developer, has achieved a five star rating in its first attempt at the British Safety Council’s ‘Five Star Occupational Health and Safety’ Audit for Max Towers, its premium commercial office project in Noida. The grading reflects the organisation’s commitment to the continual improvement of its occupational health and safety systems. The comprehensive audit covered documentation, interviews with senior management and employees, stakeholder feedback, and rigorous sampling of on-ground activities. It assessed performance against best prac..

Next Story
Real Estate

India’s Tier 2 & 3 Cities: The Next Growth Frontier for Real Estate

Introduction India’s metropolitan cities have long dominated the real estate landscape, shaping both market trends and public discourse, but the narrative is shifting towards India’s tier 2 and 3 cities. Beyond the metro cities, Tier 2 and Tier 3 cities such as Indore, Ahmedabad, Chandigarh, Jaipur, Coimbatore, Lucknow, Bhubaneswar, Kochi, Surat, Guwahati, and many others are emerging as vibrant real estate hubs. This growth is driven by impetus from rapid urbanisation, logistics corridors like the Delhi Mumbai Industrial Corridor, IT/ITeS investment zones, emergence of global capabil..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?