The National Real Estate Development Council (NAREDCO) hosted an insightful webinar focusing on Small & Medium Real Estate Investment Trusts (SM REITs) earlier this month in collaboration with Kedia Corporate Advisors Pvt. Ltd. The webinar holds significance in light of recent regulatory developments by the Securities and Exchange Board of India (SEBI) and therefore the understanding the specifics of SM REITs is crucial. The session featured CA Amit Kumar Kedia, Director at Kedia Corporate Advisors Pvt. Ltd., who shared insights on SM REITs, exploring their benefits and regulatory framework.
“During the webinar, our discussion highlighted the pivotal role of regulatory environments in nurturing innovation and entrepreneurship within the real estate sector. By prioritising compliance and transparency, we not only reinforce investor trust but also unlock the full potential of SM REITs as a robust investment avenue. Heightening disclosure and adherence standards, the introduction of SM REITs aims to align the REITs market with India’s equity market, fortifying the regulatory landscape and positioning India as an appealing destination for both local and international investors, thereby bolstering our global investment stature. Inspired by the ‘Sachetisation’ of financial products, the advent of SM REITs seeks to democratise ownership, fostering accessibility and affordability for a diverse array of investors. Such initiatives resonate with India’s ambition to achieve developed nation status by 2047. Let us embrace this transformative policy shift as we collectively work towards building a developed and empowered India," he emphasised.
The webinar covered a spectrum of topics including the concept of SM REITs, regulatory landscape, market analysis, investor attraction opportunities, risk management strategies, tax implications, and future perspectives. An interactive Q&A session was conducted to address participant queries.
"The webinar on SM REITs was a transformative event for India’s real estate sector. By going deep into innovative approaches and addressing challenges, it served as a catalyst for progress. With a focus on alternative financing through Real Estate Investment Trusts (REITs), we aimed to empower the workforce, foster sustained growth, and drive development within the sector through this webinar," said G Hari Babu, National President of NAREDCO.
“It is predicted that India’s real estate market will grow faster in 2024, as it is the fastest-growing major economy in the world and all real estate indicators are at record levels. Introducing small and medium REITs is a positive step towards making real estate investment more accessible in India. By lowering entry barriers and offering diversification opportunities, these REITs intend to attract more retail and institutional investors and boost confidence in the market. This regulatory framework will boost investments, liquidity, and domestic and international capital flows into the real estate sector,” said Dr. Niranjan Hiranandani, Chairman, NAREDCO.
Rajan Bandelkar, Vice Chairman, NAREDCO, said, “Indeed, the real estate industry has been undergoing significant transformations, with increased organization and the entry of new corporate players. This evolution brings several advantages to the sector, such as improved trust and faith among stakeholders, which were lacking in the past. Moreover, the correlation between the share market and the real estate market has become more pronounced, with upward swings in the former often reflecting positively on the latter.
One notable development is the approval of SM REITs on March 8, 2024. REITs represent a new avenue for investment in real estate, providing faster access to capital and offering benefits to individual investors. With REITs, even those with smaller savings can afford to invest in real estate, as they can participate in the market through fractional ownership. This democratisation of investment opportunities allows common individuals to benefit from the advantages previously accessible only to larger investors.”
