“Every person who invests in well-selected real estate in a growing section of a prosperous community adopts the surest and safest method of becoming independent, for real estate is the basis of wealth.“ – Theodore Roosevelt
This maxim by Theodore Roosevelt, the U.S. president, speaks volumes about the enduring wisdom of investing in real estate. He perceives real estate as a means of achieving financial independence. While the specific strategies and techniques may vary, the fundamental principles of real estate investment remain as relevant today as they were when Roosevelt first uttered these words.
Real estate is an enduring pursuit in India that has withstood the test of time for centuries, epitomising a preferred avenue of investment. Typically, the fervour for real estate has centred around the acquisition of personal abodes, indicative of a deep-seated desire for a place to call home.
By creating a transparent mechanism for raising finance in the real estate market, REITs will streamline the sector. Registration with SEBI in India will subject REITs to stringent regulation and monitoring by the regulator. The introduction of REITs will improve the debt-equity proportion in the real estate market, as it is a source of pure equity capital. This will catalyse growth in a more stable and mature real estate market.
The potential for substantially greater returns on investments in Real Estate Investment Trusts (REITs) in India compared to analogous investments in developed countries is a promising prospect. Thus, the optimal development of REITs could prove instrumental in bolstering the expansion of the residential real estate industry in India, by serving as an attractive lure for increased investment in this sector.
For investors seeking to tap into the Indian real estate markets, Indian REITs present a transparent and liquid alternative to direct property investment. With the ability to provide an additional funding source to real estate companies and an alternative asset to investors, Indian REITs have emerged as a promising avenue for all parties involved.
Ultimately, India has all the necessary elements to establish a successful REIT ecosystem in the long term. A well-organised regulatory framework, one that ensures the best interests of investors, the market, and the nation, is critical.
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