HYDERABAD: Hyderabad is amongst the four Indian cities that will witness new Real Estate Investment Trust (REIT) developments soon and could witness additional 1.8 mn sq ft of new REIT leasable area.
In a recent study on REITs by Windmill Capital, Hyderabad recorded 0.79 per cent year-on-year (YoY) growth in the total leasable area under REITs. The leasable area under REITs was pegged at 12.7 million sq ft as of September 2022. It was 12.6 million sq ft in September 2022.
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 & small case which indicates that retail investors allocate up to 2 per cent of their investment portfolio in REITS as compared to five years back.
With regard to the stock performance of listed REITs, Mindspace REIT delivered the highest absolute returns of 8.11 per cent year to date till October 31, 2022. For the same period, Brookfield India REIT was the second best performing listed REIT with 7.30 per cent absolute returns followed by Embassy REIT with 1.4 per cent during the same period.