REIT Regime to Boost Liquidity in Real Estate Sector



The successful launch of India’s first Real estate Investment Trust (REIT) valued at 4750 crore by Embassy Office Parks ( a joint venture between the real estate company Embassy and global private equity firm , Blackstone has opened doors for an alternate funding avenue for the capital intensive real estate sector.

Indian real estate , particularly commercial office real estate is an attractive market for both global Investors and retail investors as there is a wide variety of quality assets, supported by favourable policy ecosystem.The far reaching reforms like Real Estate Regulation Act (RERA) and GST have ushered in transparency and accountability in real estate sector, in turn heightening the interest of global investors.

Says Pradeep Aggarwal, Founder & Chairman, Signature Global, “With improved investor sentiment and more REITs to follow, debt- ridden and fund -starved developers will find a new potential source of funding in it. And as with the passage of time, REITs attain maturity, more asset classes like retail, logistics and even residential will get benefited. In general , the liquidity boost provided by REITs will lift the real estate market by helping boost supply which in turn will help meet the aim of ‘Housing for All’.

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