HYDERABAD: The Indian REITs Association (IRA) and Bharat InvITs Association (BIA) have emerged as key players in India’s financial ecosystem, offering investors opportunities to diversify portfolios while supporting the nation’s infrastructure growth. At their first joint awareness programme held in Hyderabad on Wednesday, experts highlighted the growing significance of Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) in shaping India’s capital markets.
This collaboration marks a major step in enhancing investor understanding, promoting adoption and fostering a robust regulatory environment to deepen capital markets.
BIA CEO Venkatesh pointed out that REITS and InvITs are SEBI-regulated, safe investment options aligned with India’s vision of becoming a $30 trillion economy by 2047. He stressed their role in driving infrastructure growth in sectors such as roads, data centres and telecom, while also generating employment and accelerating GDP growth.
Preeti Cheeda, CFO of Mindspace Business Parks REIT, elaborated on the benefits of REITs, which allow investors to earn income from real estate without owning properties. She noted that India currently has four publicly listed REITs, including Brookfield India and Embassy Office Parks. Similarly, InvITs, which manage infrastructure assets like roads and pipelines, enable developers to unlock capital for reinvestment into new projects. Out of 26 SEBI-registered InvITs, four are publicly listed.
“REITs are required to distribute at least 90% of their net distributable cash flows to unit holders on a half-yearly basis, ensuring regular income. Investors also stand to benefit from the potential capital appreciation of the units they hold, making REITs an attractive investment instrument. We are excited to engage with stakeholders in Hyderabad, raise awareness about REITs, and look forward to welcoming more unitholders from this key market,” stated Preeti.
“InvITs in India hold immense growth potential, driven by the expanding infrastructure needs. With their ability to provide stable yields and liquidity, InvITs are becoming a preferred vehicle for institutional and retail investors. As infrastructure development accelerates, the scope for InvITs to finance and manage assets efficiently is poised to grow substantially,” a BIA member said.