Here are the 5 stories that you need to be aware of from this past week:

• Residential price rise: Despite a slowdown in the global residential price growth to 1.7% year-on-year in Q2 2023, Indian cities like Mumbai, Bengaluru, and Delhi saw higher growth rates of 6%, 5.3%, and 4.5% respectively, due to high demand. The sustained demand in India is attributed to strong economic fundamentals and consumer confidence. Read more
• Domestic capital: A report noted that the Indian real estate sector has around $41 billion of unused domestic institutional capital. This capital comes from local institutions like mutual funds and insurance companies and is anticipated to spur growth in the sector. With foreign funds becoming cautious, this domestic capital is seen as a fresh avenue to fuel the sector's expansion. Read more
• Japanese company invests: Sumitomo Realty & Development is investing $3.34 billion in a Mumbai project, constructing offices, a hotel, and commercial facilities on an 80,000-square-metre site. This move is part of a broader shift by Japanese real estate firms towards emerging markets like India, propelled by its growing economy and business-friendly reforms. Read more
• Nature’s missing law: Scientists proposed a new law extending Darwin's evolution theory to atoms, stars, and more. This law, "the law of increasing functional information," suggests all systems, living or non-living, evolve towards more complexity and diversity. The proposal offers a new way to understand and potentially predict cosmic evolution. Read more
• Afterlife communication: In Ancient Egypt, false doors in elite tombs were portals for offerings to the deceased. They showcased a feast, representing sustenance in the afterlife. Common folk made clay models called soul houses, filled with food offerings, and placed them on graves. These practices highlighted the bond between the living and the departed, rooted in Egyptian beliefs. Read more

India, with its myriad cultures, traditions, and economic dynamics, has always been a treasure trove for investors. Now, with urbanisation hitting its stride and real estate booming, there's a new player on the block: Real Estate Investment Trusts or REITs. Like the lead actor’s grand entry in a Bollywood blockbuster, REITs have made a dramatic appearance in the Indian market.

What is it? REITs, in essence, allow individuals to invest in portfolios of large-scale properties. Think of REITs as a chakravyuh—a legendary labyrinth. Each twist and turn (or in this case, share) gives you a piece of various real estate treasures, each paying its dividends.

The maiden venture: Embassy Office Parks REIT was India's first REIT. Launched in early 2019, it was a joint venture between the Embassy Group and Blackstone. This REIT brought under its umbrella a diverse portfolio of office spaces spread across major Indian cities.

As the Indian real estate sector sheds its opaque layers, REITs offer a transparent investment avenue. India's booming middle class sees urban real estate as a sign of prosperity. REITs provide an accessible ticket for this ride, as they offer rent-like dividends without the hassles of property management.

Traditional ownership v/s REITs: Owning a physical property in India has long been seen as owning a prized jewel—a tangible asset to flaunt and bank upon. But REITs? It's like owning shares in a jewellery company. So how does this compare with traditional property ownership?

• Liquidity: REITs offer easier exits, unlike the prolonged process of selling a property.
• Diversity: One can invest in various properties across regions, rather than placing all bets on one property.
• Management: Say goodbye to the challenges of property maintenance and disputes with tenants.

Navigating the market: It's important to recognize that the rhythm of Mumbai's real estate differs from the tech corridors of Bengaluru or the majestic sprawls of Delhi. Being informed about these unique dynamics, staying updated with the latest in the real estate world, and seeking expert guidance can be the compass guiding you through the REIT maze.

Getting started with REITs is not very different from trading in stocks. Here's a concise guide:

• Demat Account: First and foremost, you need a Demat and trading account, which is the same account you'd use to trade shares on the stock exchange. If you don’t already have one, several banks and brokerage firms can help set it up for you.
• REIT Listings: Once your account is active, you can view the REITs listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
• Research: Before taking the plunge, conduct thorough research. Understand the properties under a REIT’s umbrella, their occupancy rates, the quality of tenants, and past performance. Financial reports, investor presentations, and analysts' insights can be valuable resources.
• Invest: After your due diligence, you can buy units of your chosen REIT, just like you would purchase shares of a company. Apart from stocks, you can also invest in mutual funds and exchange-traded funds.

Much like the evolution of the Indian stock market, which matured from an unpredictable youngster to a more stable entity, REITs too have a promising journey ahead in India. They are a testament to the nation's growing and evolving investment horizon. One thing is clear: staying informed and being part of this growth story can lead to a profitable outcome.

May your investments hit all the right notes!

I am planning to buy a property in a gated society. But the house will be completed only in 2027. Is that time period long?
- Sachin

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Disclaimer: This newsletter is intended for informational purposes only and should not be construed as professional advice. Please conduct your own due diligence prior to making any decisions.