RBI plans to allow bank loans to Real Estate Investment Trusts by July 1

The Reserve Bank of India (RBI) is set to introduce a significant policy change by July 1, allowing banks to extend loans to Real Estate Investment Trusts (REITs). This move aims to bolster the real estate sector, which has been gradually recovering from the impacts of the COVID-19 pandemic. Currently, India has five publicly listed REITs, including prominent names such as Brookfield India Real Estate Trust and Embassy Office Parks REIT. The RBI's decision is expected to enhance liquidity for these investment vehicles, enabling them to finance new projects and manage existing assets more effectively. By facilitating easier access to credit, the central bank hopes to stimulate growth in the real estate market, which plays a crucial role in the country's economic landscape. This initiative aligns with the government's broader efforts to promote investment in real estate and infrastructure, promoting economic stability and growth in the sector. As the real estate market continues to evolve, the RBI's policy could lead to increased investor confidence and participation in this asset class.