Mumbai Recorded Second Highest REIT Leasable Area
In a recent study on REITs by Windmill Capital, a wholly-owned subsidiary of smallcase Technologies Pvt Ltd, it was found that India recorded 6.85% YoY growth in the total leasable area of listed Real Estate Investment Trust (REITs) from 87.6 mn sq ft as of 30th September 2021 to 93.6 mn sq ft as of 30th September 2022. According to the corporate filings of listed REITs, Mumbai recorded 1.85% YoY growth in REIT leasable area from 16.2 mn sq ft as of 30th September 2021 to 16.5 mn sq ft as of 30th September 2022. The city accounted for the second-highest total leasable area under REITs amongst the eight Indian cities. Mumbai is expected to witness the highest addition of 7.7 mn sq ft of REIT leasable area in the city followed by Chennai’s 5 mn sq ft as per the Windmill Capital study. Additionally, according to listed REITs’ expansion plans, the current leasable area is expected to grow by more than 10% in the coming quarters. REITs have emerged as a strong investment alternative, due to market volatility and inflationary pressures which have led investors to view REITs as an asset diversification strategy. This is also validated in an upcoming report titled ‘Rise of the Indian Retail Investor’ by Zinnov Management Consulting and smallcase which indicates that retail investors allocate up to 2% of their investment portfolio in REITS as compared to 5 years back. Sharing a perspective on REITs, Vasanth Kamath, Founder & CEO of, smallcase said, “India’s REITs market is poised for accelerated growth as both investors and sponsors are drawing confidence from evolving regulatory framework, transparency, institutionalised ownership and ability to deliver robust returns. Regulations have also encouraged retail investors with the reduction in minimum subscription (from INR 50,000 to INR 15,000). This increases the liquidity for the entire REITs market and allows greater participation from young retail investors.” With regard to stock performance of listed REITs, Mindspace REIT delivered the highest absolute returns of 8.11% year to date till 31st October 2022. For the same period, Brookfield India REIT was the second best performing listed REIT with 7.30% absolute returns followed by Embassy REIT with 1.40% during the same period. Blackstone Group is planning to list the next REIT in the country and India’s first retail REIT ‘Nexus Select Trust’ along with Select Citywalk and another shareholder.
Tags : REIT Windmill Capital subsidiary Smallcase Technologies Pvt Ltd. Vasanth Kamath Founder & CEO Smallcase