India is going to provide 294 million sq.ft of REIT capable space.

By Abhay Harish Shah , Realty Quarter

The nation’s commercial real estate market is assessed to give 294 million sq. ft of REIT capable space from the current office stock, as per JLL’s recent report titled India REITs Heralding a New Era in Real Estate Investments which was released on Wednesday. These REIT commendable resources would be esteemed at $35 billion.

According to the report, Bangalore will offer the highest REIT worthy commercial office assets at a total of 97.8 million sq.ft which is valued at around $10.7 billion.

While Mumbai with 17% share follows at 49.7 million sq.ft worth $8.6 billion, ahead of Delhi-NCR and Chennai, Bangalore occupies the largest share of 33% of REIT able space.

Mr Samantak Das chief economist and head of research at JLL India said, “The actual reason that separates high-quality REIT-able office assets from the rest is that they are over 200,000 sq.ft in size, with less than 20% vacancy and are owned and managed by large institutional investors and developers rather than being sold to high net-worth individuals through strata sale.

Investors have allocated nearly $17 billion in the form of direct investments as well as through entity level investments from 2006 to 2019 in the office space. The report displays that India has already seen its first REIT listing from the Embassy Group-Blackstone joint venture in March this year. With a portfolio of 32.6 million square feet, the listing is also Asia’s largest in terms of area.

In India, REITs are taking into consideration holding business properties. Rising straightforwardness levels, dynamic guidelines and a vigorous business land advertise have made the business office portion a most loved among institutional financial specialists.