Boom Boom nurtures the Rit growth story in India; Here is what it means to investors

With the emergence of India as a center of global power centers (GCCS), a silent revolution is formed in the country’s commercial real estate market. The increase in the Gulf Cooperation Council countries is not only high quality, but also opens a set of opportunities for real estate investment investors (Reit). Nowadays, there are more than 1700 years in the country.

While participating in his views on the margins of the RAats (IRA) and Bharat Invits (BIA) in New Delhi, Alok Agarwal, Managing Director and CEO of Brookfield India Real Estate Trus and President of the Indian Reits Association, said that the rapid expansion of GCCS is directly linked to the growth of reinse in India.

He also added that it is expected that the number of Gulf Cooperation Council countries in India will double about 3000 in the next 5-7 years. The country has already seen a record 90 million square feet of absorbing office spaces, which is the highest level ever. In addition to the Gulf Cooperation Council countries, technology companies, Indian companies and banks also occupy an area, which enhances the demand for the characteristics of distinguished offices.

In general, real estate investment funds are investment vehicles that own or manage income -generating real estate, allowing investors to obtain a share of productive income without buying real estate directly. The five spinal funds listed in India are Brookfield India Real Estate, the Embassy Office of the Rit Park, Mindspace Business Parks Reit, Nexus Sect Trust, and KNOWLEDGE REALTY TRUST.

“The Gulf Cooperation Council states represent approximately 35-40 % of the total absorption of office spaces in India. They require high-quality workplaces and can technology and want to pay for them. This prompts developers to build distinguished offices, and real estate investment funds benefit directly from this demand.”

Commercial real estate jobs increased from the early 80 % to the late eighties in the 12-18 months, due to the demand led by GCC. He adds: “Wherever the Gulf Cooperation Council countries take a space, they bring innovation and stability to the market. It means more absorption in the interest of real estate investment funds, which in turn benefits investors,” adding that the momentum is unlikely to fade any time soon.

In addition to financial returns, real estate investment funds contribute to the recruitment story in India. “If 90 million square feet are rented, we assume 100 square feet for each employee, which translates into approximately 9 new jobs with white collars in sectors such as engineering, technology and management,” said Agarwal Business Toys.

But the effect of the ripple does not stop there. Each white collar function raises opportunities from 2.5-3 times of blue-collar opportunities in areas such as security, property management and facility maintenance, and to strike the social and economic impact of the growth of commercial real estate in India.

When asked why one should invest in real estate investment funds? AGGARWAL was clear: “Real estate investment funds should be part of the portfolio of each investor.” Unlike stocks, investment funds provide stability and consistent distributions, which grow annually. It is also perfectly suitable for investors looking for a negative income, with predictable returns and the advantages of governor.

It indicates that revenue from 12 to 14 % can be expected in the long run, combining each of the distributions and capital estimation.

Like all investments, investment funds are not free of risk. The epidemic showed how the occupation can be disabled when the offices are closed. Inflation rates and high interest rates can affect distributions. “But the organizers have removed the product significantly. Real estate investment funds are assigned to distribute 90 % of their income, and to ensure transparency and
Aggarwal says.

While sharing his views on how to choose the correct Reit, Agarwal suggested due care on some of the main aspects: management record and experience, tenant quality and assets, and the value of the value of pure assets (NAV) and the consistency of distributions.

“All real estate investment funds in India are mainly strong, but these factors help investors make an enlightened option,” he said.

While real estate investment funds in the office dominate the current scene, Agarwal is optimistic about new segments. He said: “India is a market that depends on consumption. Investment funds in the data center and the treatment of logistical real estate investment funds on the horizon, although it will take some time to achieve them.”

Nowadays, five real estate investment funds are led in a combined market value list. 1.5 Crores for a ball, which reflects the increasing confidence in the asset category and its ability to provide stable and predictive distributions.