REITs: Driving Institutionalization in the Commercial Real Estate Sector

Institutional investors show increasing confidence in the Indian commercial real estate sector, with the emergence of REITs presenting attractive investment opportunities. The three listed office REITs - Embassy Office Parks, Mindspace Business Parks, and Brookfield India REIT - constitute 12% of the total Grade A office stock in India, offering annualized distribution yields of 6-7%. The evolving regulatory environment, easing entry barriers, and operational resilience contribute to the positive outlook for REITs, indicating their potential to expand and diversify into various sectors, including retail, data centers, hospitality, healthcare, and education, supported by strategic partnerships and green initiatives.

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The Author

Vimal Nadar

Senior Director & Head of Research, Colliers India

Vimal has a cumulative experience of about 15 years post qualification (as a Chartered Accountant) and joined Colliers as the Head of Research. He is responsible for leading and managing India Research operations. He focuses on thought leadership through timely and insightful content to support business growth while elevating the brand value of the company. Prior to this, he led research thought leadership for leading International Property Consulting firms. He began his professional career with Crisil; business research and consulting being his core areas of work.

His areas of expertise include business assessment, demand-supply analysis, market entry strategy, strategic road mapping, etc. in sectors such as real estate, Cement, BFSI and other sub-sectors within the infrastructure domain.