The Leasable Area of Listed Real Estate Investment Trusts - REITs in India Increases in 2022

According to a research by an investment services provider for retail investors, the leasable area of listed real estate investment trusts (REITs) in India increased 6.85 percent to 93.6 million square feet on September 30 from 87.6 million square feet a year before.

According to a survey by Windmill Capital, a subsidiary of financial technology business Smallcase Technologies, Mindspace REIT was the best performer among listed REITs based on absolute returns, achieving 8.11 percent returns through October 31. Brook field India REIT ranked second with returns of 7.30% absolute, followed by Embassy REIT with gains of 1.40% absolute.

India's REITs industry is primed for fast expansion as investors and sponsors gain confidence from a growing legal environment, transparency, institutionalised ownership, and the capacity to generate substantial returns, according to Vasanth Kamath, CEO of Smallcase.

As of September 30, according to corporate filings of listed REITs, Bengaluru continues to lead the market with a total leased area of 27.8 million square feet.As of September 30, 2022, the total leasable space in Noida increased by 60.81 percent in a year to 11.9 million square feet.

"Regulations have also attracted retail investors by lowering minimum subscription requirements" (from 50,000 to 15,000). This boosts the liquidity of the overall REITs market and lets younger retail investors to participate more," said Kamath.Moreover, according to the growth plans of listed REITs, the present leasable area is anticipated to increase by more than 10 percent in the next quarters.

Due to market volatility and inflationary pressures, which have caused investors to regard REITs as an asset diversification strategy, REITs have emerged as a good investment opportunity.According to a report by Windmill Capital, Mumbai is anticipated to add the most REIT-leasable space in the next quarter, with 7.7 million square feet, followed by Chennai with 5 million square feet.