When i first looked at REITs few years back at Embassy listing, I checked exactly same point and was excited at REIT opportunity in a growing economy like India.
Infact in various time frames in US, REITs have performed better than equity as well (dividends extra).
However I had to unfortunately give Indian REITs a pass because of the sponsors/promoters in India. These have so far either been real estate builders or PEs looking for exit.
If probably Tata or even Mukesh Ambani or promter of such status and quality are commited sponsors of REIT, then its a great opportunity…cannot say same with other sponsors as this is a capital intensive space amd capital allocation for future acquisitions is extremely important…
These are just my views and I may be wrong in my assessments. Would be happy to hear others views around this again after frw years of everyones experience of REITs in Indian context. Thanks
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