REITs-owned real estate in Hyderabad totals 12.7 million square feet

Hyderabad is one of the four Indian cities to soon see new REIT developments. An additional 1.8 million square feet of leasable REIT space might be added to the city.

Hyderabad: The city has 12.7 million square feet of total leasable space under Real Estate Investment Trusts (REITs) as of September 30, an increase of 0.79 percent from 12.6 million square feet as of September 30, 2021.

Hyderabad is one of the four Indian cities to soon see new REIT developments. An additional 1.8 million square feet of leasable REIT space might be added to the city. In addition, based on the expansion plans of listed REITs, it is predicted that the current leasable area will rise by more than 10 percent in the following quarters.

In a recent study on REITs by Windmill Capital, a wholly-owned subsidiary of Small Case Technologies, it was found that India recorded 6.85 percent YoY growth in the total leasable area of listed REITs, from 87.6 million square feet as of September 30, 2021, to 93.6 million square feet as of September 30, 2022.

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REITs have emerged as a strong investment alternative due to market volatility and inflationary pressures, which have led investors to view REITs as an asset diversification strategy.

This is also validated in an upcoming report titled ‘Rise of the Indian Retail Investor’ by Zinnov Management Consulting and Small Case, which indicates that retail investors now allocate up to 2 percent of their investment portfolios in REITS, compared to five years ago.

Founder and CEO of Small Case, Vasanth Kamath, stated that the REIT market in India “is poised for accelerated growth as both investors and sponsors draw confidence from an evolving regulatory framework, transparency, institutionalised ownership, and the ability to deliver robust returns”.

Regulations have also aided retail investors by lowering the minimum membership amount (from Rs 50,000 to Rs 15,000). Due to the increased market liquidity for REITs, young retail investors can now participate more actively.

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