REITs, InvITs thrive; funds surge to Rs 114.74 bn in 2023
ECONOMY & POLICY

REITs, InvITs thrive; funds surge to Rs 114.74 bn in 2023

REITs and InvITs have become increasingly popular as favoured investment options, witnessing a tenfold surge in fundraising through the route, reaching Rs 114.74 billion in 2023. This growth is attributed to measures implemented by the regulator Sebi and the appealing returns provided by these instruments.

This year, we are likely to see interest rates decrease in the first half of 2024 due to the expected drop in inflation. These conditions are favourable for investors who are looking to invest in long-term opportunities, such as REITs and InvITs.

Data compiled by Prime Database.com reveals that in 2023, REITs and InvITs collectively raised Rs 114.74 billion, a significant increase from the record low amount of Rs 11.66 billion in 2022. Prior to that, funds amounting to Rs 176.41 billion were collected through this route in 2021 and Rs 297.15 billion in 2020.

While REITs and InvITs are relatively new concepts in the Indian market, they have been globally popular for their attractive returns and capital appreciation. A REIT comprises a portfolio of commercial real estate assets, mostly leased out, while InvITs consist of a portfolio of infrastructure assets such as highways.

REITs and InvITs have become increasingly popular as favoured investment options, witnessing a tenfold surge in fundraising through the route, reaching Rs 114.74 billion in 2023. This growth is attributed to measures implemented by the regulator Sebi and the appealing returns provided by these instruments. This year, we are likely to see interest rates decrease in the first half of 2024 due to the expected drop in inflation. These conditions are favourable for investors who are looking to invest in long-term opportunities, such as REITs and InvITs. Data compiled by Prime Database.com reveals that in 2023, REITs and InvITs collectively raised Rs 114.74 billion, a significant increase from the record low amount of Rs 11.66 billion in 2022. Prior to that, funds amounting to Rs 176.41 billion were collected through this route in 2021 and Rs 297.15 billion in 2020. While REITs and InvITs are relatively new concepts in the Indian market, they have been globally popular for their attractive returns and capital appreciation. A REIT comprises a portfolio of commercial real estate assets, mostly leased out, while InvITs consist of a portfolio of infrastructure assets such as highways.

Next Story
Infrastructure Energy

Mizoram To Build Rs 139 Billion Pumped Storage Power Plant

Mizoram Chief Minister Lalduhoma on Friday announced plans to construct a 2,400 MW pumped storage hydroelectric power plant in Hnahthial district, marking a major step towards achieving energy self-sufficiency in the state. Addressing the Mizo Students’ Union general conference in Hnahthial town, the Chief Minister said the plant would be developed across the Darzo Nallah, a tributary of the Tuipui river. Once operational, the project is expected to play a pivotal role in meeting Mizoram’s rising electricity demand and reducing dependence on imported power. Officials from the State Power..

Next Story
Infrastructure Energy

Centre Plans Nationwide Opening Of Power Retail Market

India is preparing to open up its retail electricity market to private companies nationwide, effectively ending the long-standing monopoly of state-run power distributors in most regions, according to a draft bill released by the Union Power Ministry on Friday. The move will enable major private sector players — including Adani Enterprises, Tata Power, Torrent Power, and CESC — to expand their presence across the country’s electricity distribution landscape. A similar reform attempt in 2022 had faced strong opposition from state-run distribution companies (discoms), which currently dom..

Next Story
Infrastructure Energy

CEA Sets 100 GW Nuclear Target For India By 2047

In a landmark step marking its 52nd Foundation Day, the Central Electricity Authority (CEA) unveiled an ambitious roadmap to develop 100 gigawatts (GW) of nuclear power capacity by 2047, aligning with India’s long-term Net-Zero commitment and energy security objectives. The event, held at the Central Water Commission auditorium in New Delhi’s R.K. Puram, was attended by Pankaj Agarwal, Secretary, Ministry of Power, who served as the Chief Guest. The roadmap sets out a detailed plan to expand India’s nuclear capacity from its current level of approximately 8,180 MW as of early 2025, outl..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?