How has the performance of REITs been in recent years?

As of April 2023, the performance of REITs in India has been mixed over the past few years. The COVID19 pandemic and the resultant economic slowdown had a significant impact on the commercial real estate sector, which is where most REITs in India operate.

In 2020, REITs faced challenges due to a sharp drop in demand for office space as businesses implemented workfromhome policies. As a result, several REITs reported lower rental income and distributions to their investors. However, some REITs, particularly those with a higher proportion of properties in the technology hub of Bangalore, managed to weather the storm better than others.

In 2021, with the easing of lockdowns and a gradual return to normalcy, REITs have seen a recovery in their performance. Many REITs have reported higher occupancy rates and rental income, and some have also acquired new properties to expand their portfolios.

Overall, like any investment, the performance of REITs can vary depending on market conditions, the quality of the properties in their portfolio, and the management team's expertise. It's important to conduct thorough research and due diligence before investing in a REIT.