Real Estate Investment Trusts (REITs) have made a significant impact in the Indian market by raising over 1,371 crore rupees in the first quarter of the financial year. Among the REITs listed, Embassy Office Parks has distributed the highest amount, totaling 530.8 crore rupees. This was followed by Nexus Select Trust with 325.3 crore rupees, Mindspace Business Parks with 298.9 crore rupees, and Brookfield India Real Estate Trust with 216 crore rupees.
After being listed in the market, Embassy Office Parks distributed the highest amount to investors, totaling 10,392 crore rupees. Mindspace Business Parks distributed 4,231 crore rupees, Brookfield distributed 2,358 crore rupees, and Nexus Select Trust distributed 1,397 crore rupees.
REITs have only recently entered the Indian market, with a total asset value of over 1.40 lakh crore rupees. As of June 28, the market value of REITs stands at 87,000 crore rupees. The total assets managed by these REITs include 12.2 crore square feet of office space, making them a significant player in the real estate market.
Investors can benefit from REITs in two ways – through capital appreciation and dividend income. With a long-term lease agreement in place, investors can expect a stable income from their investments. The increase in the value of units acquired through investment is the primary source of capital gains for investors. The Securities and Exchange Board of India (SEBI) and the Ministry of Finance provide guidelines for the operation of REITs in the market.
The time horizon for realizing capital gains from long-term investments in REITs and Infrastructure Investment Trusts (InvITs) is determined by the lock-in period of 36 months. The budget for the past 12 months has made investment more attractive, as investors can now reinvest their gains without any tax implications. However, a 12.50% tax is applicable to gains above 1,25,000 rupees for investments made after the lock-in period.
To learn more about how to invest in REITs and generate returns, read Chapter 203.
In conclusion, REITs have emerged as a lucrative investment option in the Indian market, offering investors the opportunity to earn stable income and capital appreciation. With the right investment strategy and understanding of the market dynamics, investors can benefit from the potential growth of REITs in the real estate sector.