Realty Worth $36 Billion Could Be Listed Under REITs: JLL

India’s Real Estate Investment Trust (Reit) market will enter a period of prolonged growth, with more REITs forecast to be listed in 2021 and beyond, according to a report by JLL, a global real estate service firm. With the li

BY Realty Plus
Published - Friday, 26 Mar, 2021

Realty Worth $36 Billion Could Be Listed Under REITs: JLL

India’s Real Estate Investment Trust (Reit) market will enter a period of prolonged growth, with more REITs forecast to be listed in 2021 and beyond, according to a report by JLL, a global real estate service firm. With the listing of more REITs in India, the number of buyers and sellers will broaden significantly, further increasing market liquidity and yield compression, and the incentive to securitize property assets. Bengaluru is identified as India’s largest source for potential assets available for securitisation, accounting for 31% or 88 million sq ft of REIT-worthy asset, valued at $11.16 billion. The city, with large IT spaces housing global occupiers, will be the most favoured market for newly listed REITs, given that most assets are singly owned by developers or large funds, allowing for the aggregation of assets into managed structures. The listed markets in India performed well, providing confidence in the future of the India REIT sector. The forecast for more listings follows the successful launch of India’s third sponsored REIT in early 2021. Since the first India REIT was listed in 2019, a framework for improved liquidity, transparency, and corporate governance was created for REITs to thrive. There are opportunities for institutional investors to participate in this structural theme, potentially by assembling complementary portfolios for securitisation into Reits, or co-investing with existing platforms pre-IPO. Despite challenging socio-economic environment, the current Reit framework in India as compared to other mature markets, have already set the stage for continued success for the sector.