REITs and InvITs Experience Robust Growth, Fund Mobilisation Rises to Rs 11,474 Crore in 2023

REITs and InvITs Experience Robust Growth, Fund Mobilisation Rises to Rs 11,474 Crore in 2023

REITs and InvITs have become popular investment options, with fundraising through these instruments increasing dramatically in 2023. The surge in fund mobilisation, reaching Rs 11,474 crore, can be credited to the efforts of regulator Sebi and the attractive returns offered by REITs and InvITs. Experts predict that this growth will continue in 2024 due to anticipated rate cuts, tax incentives, and relaxed investment norms. REITs, which consist of commercial real estate assets, and InvITs, which include infrastructure assets like highways, have gained global popularity for their lucrative returns and capital appreciation. The Indian market has seen the introduction of 23 registered InvITs and 5 REITs with assets under management exceeding Rs 30,000 crore. Market participants have made significant efforts to educate investors about the benefits of investing in these trusts. Additionally, Sebi has introduced regulations to facilitate investment in InvITs, such as reducing lot sizes and enabling bank lending. The distribution of a specific percentage of income to investors makes REITs and InvITs attractive options for generating appealing returns. Furthermore, the government’s focus on improving infrastructure provides additional investment opportunities through InvITs. The continuous amendments made by Sebi, including governance standards and transparency provisions, have further elevated the appeal of REITs and InvITs. The ease of investment has also been improved by reducing lot sizes and updating pricing requirements for institutional placements. The surge in fund mobilisation indicates the growing popularity of these investment vehicles in India.

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TIS Staff

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