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Can REIT address expectations of Indian Real Estate Investors?

Book Chapter

Authors: Harmeet Matharu; Vijaya Kittu Manda

Book Name: Developments, Effects and Challenges of COVID-19 in India

ISBN: 978-93-5407-176-8

Publisher: Government Ramnarayan Chellaram College of Commerce & Management, Bengaluru, India

Publication Date: May 2020

Pages: Pages 181-186

Abstract: Indian Real Estate investors got into an exciting phase with the capital market regulator SEBI allowing the listing of units of Real Estate Investment Trusts (REIT). With two REITs already listedand trading on stock exchanges, investors now cannot invest indirectly in the real estate asset class yet overcome the disadvantages that traditionally come with it. This study attempts to understand the expectations of Indian Real Estate Investors and discusses how emerging products attempt to provide solutions. A survey with 268 respondents isconducted to understand their expectations on the dimensions of liquidity, geographical diversification, taxation, inflation protection of investment, and regular/stable rental income are collected. The results were using statistical tools.The paper draws experiences from research undertaken in other parts of the world to complement missed experiences. The research finds that REITs have the necessary features to address the expectations of real estate investors. Indian experience with REITs is in a nascent stage but has a huge scope for development owing to the availability of sufficient investor interest. Easing of taxation and regulatory requirements can help improve product penetration. Findings from this study can help financial services companies and regulators in designing better products.

Keywords: real estate investor, property prices, house prices, residential property, commercial property

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Can REIT address expectations of Indian Real Estate Investors?

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