Why India’s next real estate cycle could be driven by retail investors and REITs, Sandipan Roy explains

In a recent interaction, Sandipan Roy, Chief Investment Officer at Motilal Oswal Private Wealth, outlined his perspective on India's forthcoming real estate cycle. According to the discussion, the cycle is expected to be characterised by two major trends: growing participation from retail investors and the continued institutionalisation of the sector through Real Estate Investment Trusts (REITs). Roy identified several property segments poised for opportunities, including commercial offices, hospitality, healthcare facilities, warehousing, and data centres. The commentary suggests a shift in how India's real estate market may develop, moving beyond traditional residential-dominated investment patterns toward a more diversified asset base.

For traders and investors, this outlook carries significance across multiple dimensions. India's real estate sector represents a substantial portion of the country's investment universe, and shifts in its growth drivers can influence capital flows, equity valuations, and REIT performance. The emphasis on retail participation reflects broader trends of retail investor engagement in alternative assets, while REIT institutionalisation indicates growing sophistication in India's capital markets. The identified segments—particularly data centres, healthcare, and warehousing—align with secular trends in e-commerce growth, digital infrastructure expansion, and healthcare demand. These dynamics could affect both direct property investments and publicly listed real estate equities and REIT instruments, making the trajectory of India's real estate cycle relevant for portfolio positioning and sector rotation strategies.

Source: Markets-Economic Times