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.

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