$36 Billion Worth Of Real Estate Could Be Listed Under REITs In India: JLL (The Economic Times)
March 26, 2021 – India’s Real Estate Investment Trust (REIT) market is set to enter a period of prolonged growth, with more REITs forecast to be listed in 2021 and beyond, said a report released by JLL.
The global real estate service firm said $36 billion worth of real estate is suitable to be listed under REITs. India currently has three listed REITs that are traded on bourses–Embassy Office Parks, Mindspace Business Parks and the recently listed Brookfield India Real Estate Trust.
“The continued success of listed REITs in India can be attributed to sponsor quality, track record and ability to stay transparent and deliver predictable returns. JLL believes that India’s current office markets across seven major cities have a potential space of 284 million sq. ft that could be securitised with an estimated value of $36 billion (Rs 2,62,800 crore),” said Samantak Das, Chief Economist and Head Research & REIS, JLL.
According to JLL, the number of buyers and sellers will broa
den significantly with the listing of more REITS in India, further increasing market liquidity and yield compression, and the incentive to securitise property assets.
Bengaluru is identified as India’s largest source for potential assets available for securitisation, accounting for 31 per cent or 88 million sq ft of REIT worthy assets, valued at $11.16 billion (Rs 81,468 crore).
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