Quote on Post-Budget By Indian REITs Association (IRA)
Below Quote on Post-Budget By Indian REITs Association (IRA)
The Indian REITs Association welcomes the Union Budget 2026-27 announcement on the creation of dedicated Real Estate Investment Trusts (REITs) for Central Public Sector Enterprises (CPSEs), which marks a significant and forward-looking shift in the Government’s approach to public asset management.
The proposal to monetise large, underutilised government-owned real estate through REIT structures is a strong signal of intent. It reflects a clear move from passive ownership to efficient, market-linked asset management, while unlocking long-term value from mature public assets and recycling capital into fresh infrastructure development. By positioning REITs as a key mechanism for asset monetisation, the Budget reinforces their growing role in India’s infrastructure financing ecosystem. Dedicated CPSE REITs can accelerate capital recycling, improve balance-sheet efficiency for public enterprises, and expand access to high-quality, income-generating assets for a wider investor base through transparent and regulated instruments.
The Budget’s continued emphasis on infrastructure investment — with capital expenditure raised by 9% to ?12.2 lakh crore for FY27 — further strengthens the backdrop for REITs and InvITs. The sustained focus on urban centres, including cities with populations above five lakh, opens new opportunities for commercial, transport and public infrastructure assets across both established and emerging markets.
Overall, the Union Budget 2026-27 underscores the Government’s commitment to leveraging REITs and InvITs as strategic tools for infrastructure funding, capital market deepening, and sustainable economic growth.
Above views are of the author and not of the website kindly read disclaimer
