Indian Express Update

In the next 18 months, India is likely to see the listing of four REITs; Property Stalwart Anshuman Magazine is optimistic about Indian prosperity

Depending on how the stock markets perform, the second half of this year through the end of next year or early 2025, India is expected to see the listing of at least four Real Estate Investment Trusts (REITs) on bourses, according to Anshuman Magazine, head of CBRE India.

A few years ago, the widely used REIT instrument was launched in India in an effort to increase investment in the real estate market by monetizing rent-paying properties. It allows regular investors to participate and helps uncover the enormous potential of real estate assets.

“REIT trade is definitely going to grow, and we are expecting one to two REITs by the end of this year, and there are some in the pipeline,” Magazine, chairman and CEO of CBRE for India, South East Asia, the Middle East, and Africa, told PTI today.

One of the top real estate consultants in the world is CBRE, located in the US. It is also a significant Indian property adviser.

At least four REITs, three of which are backed by office assets and one by retail (shopping mall) properties, are listed on the Indian stock markets.

Embassy Office Parks REIT, Mindspace Business Parks REIT, and Brookfield India Real Estate Trust are the three listed office-backed REITs. India's first retail-asset-backed REIT is Nexus Select Trust, which recently floated on stock exchanges.

According to him, the four REITs would probably list between the second half of this year and the end of 2024 or maybe early 2025.

According to the magazine, REITs enable individuals and small-scale investors to buy real estate and participate in the real estate industry.

Institutional investors may find REITs. Large institutional funds and private equity funds offer superior returns on investments, according to him.

More institutional investments are encouraged by REITs. It alters the playing field for real estate. Financial institutions are buying real estate in REITs, for example.

Highway infrastructure InVIT is another strategy for raising money. Without a doubt, further financing may be anticipated, he said.

Magazine anticipates that as India grows and develops, its development narrative will continue. Roads, airports, ports, railroads, MROs, and logistics are just a few of the major infrastructural upgrades that will take place in India, according to him.

He said that although the demand for student housing, hostels, co-living, and co-working spaces has continued to rise, the quality of residential projects has seen substantial changes.

The consultant division of CBRE has worked on a variety of projects, including feasibility studies, and has offered guidance on the construction of major airports, metro stations, train stations, and motorways.

Demand determines how a project is implemented. Along train stations, there are many amenities, hotels, office buildings, and retail and food establishments sprouting up.

Additionally, CBRE has provided advice to the civil aviation industry about MROs, a recent industrial growth in India.

Japanese multilateral organisations are heavily involved in metro stations. He noted that these organisations have supported not just projects but also research.

Cement and steel costs have undoubtedly increased, but manufacturing capacity has been growing to meet demand from the building industry.

“In any event, we have a lot of catching up to do if we are undersupplied. For the next 30 to 40 years, infrastructure development would continue, according to Magazine.

He also emphasised how MNCs with offices in India are essential to India's management of its ESG-Climate initiatives. Only platinum-rated or ESG-compliant office premises have been leased by MNCs.

By solely occupying platinum-rated or ESG-compliant office premises, MNCs are leading the shift.

When examining India and its surrounding markets, Magazine highlighted the significant influence played by financial institutions and investors located in Singapore.

“Money is crucial, and Singapore punches much above its weight.

When questioned about his extended international position and how it has contributed to the success of India, Magazine said that Singapore is also the centre of all the other global players in APAC, and that we cooperate with all of them.

We engage with businesses and financial institutions; several of our most recent customers have regional headquarters in Singapore, which has grown to be a significant family office hub. It is a crucial financial centre for India, he said.

India has traditionally served as a back office for multinational firms, but this won't last forever. According to him, Skilled India has advanced up the value chain from being limited to contact centres a few decades ago to include software, product development, engineering, and designing as well as processing.

He helped people understand the back-office notion by emphasising that some of the brightest individuals assist the worldwide operations of multinational operators while working in IT hubs.

In spite of the fact that the skill set is constantly being improved, a nation of 1.4 billion people nevertheless faces numerous obstacles. The young Indians are continually becoming educated and skilled, he said.

India would provide skilled labour to the globe in the future years, he added, even if certain geopolitical challenges may have an influence on Indian wealth as the nation becomes economically more intertwined with the rest of the world.

He said that CBRE has begun to grow in Tier 2 cities, which in the previous two to three years have seen a boom in the retail, logistics, and industrial sectors. The previous two to three years have seen teams deployed by CBRE in 15 tier-2 cities.

With the connection of the highway, train, and airport, growth in tier-2 cities has completely transformed.

The CBRE, which employs 11,500 people, has been expanding its India business by roughly 1,000 workers annually.

He said that “we are diversified, including in construction and facilities management, but we are cautious in making projections for future expansion related to CBRE businesses.”

He believes that India's influence as a global investor would grow.

With investments in new construction projects and the purchase of significant companies, powerful Indian enterprises have been operating on a worldwide scale for many years.

As the government modifies laws and regulations to enable businesses to invest without worrying about currency concerns, the magazine anticipates an increase in Indian investments in international markets.

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