REITs to Boost Retail Asset Investments Beyond the Metros

By Accommodation Times Bureau


image003 (1)Pankaj Renjhen, Managing Director – Retail Services, JLL India

With retail assets becoming more lucrative thanks to the impending launch of real estate investment trusts (REITs) in India, the ticket sizes of investments into retail real estate (hitherto largely limited to the metros) has picked up pace in Tier 2 and Tier 3 cities. In fact, the period between 2015 and Q3 2017 saw an astonishing 54% of investments in retail real estate happen in Tier 2 and Tier 3 cities, well exceeding those into the metros.

Of the over US$1.57 billion of investment registered in retail real estate sector between 2015 and Q3 2017, more than half went into non-metro cities. This includes entity-level deals, platform deals and acquisition of stakes in malls. Some of the global private equity funds have been investing in the retail real estate sector to diversify their investment portfolios in India.
Retail real estate investments beyond the top 7 cities (2015-Q3 2017)

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