When considering investments in REITs, it’s essential to adopt a long-term perspective, focusing on years and decades rather than quarters.
In this context, aiming for an annual return of 7% through DPU and expecting asset price appreciation at 5% per year per unit seems reasonable.
It’s worth noting that during periods of 5% annual asset price appreciation, there might be times when the stock price remains stagnant for years.
Looking at the historical performance of REITs in the US, they have demonstrated comparable returns to equity investments, and conducting back testing on such data can offer valuable insights for future possibilities, especially in a growing economy like India.
These factors make investing in REITs a promising option for the long term.
| Subscribe To Our Free Newsletter |
