Budget 2026: Sitharaman proposes investment trusts to 'recycle' real estate assets of central PSEs

NEW DELHI: Finance minister Nirmala Sitharaman on Sunday announced a proposal to set up dedicated real estate investment trusts (REITs) to fast-track the monetisation and “recycling” of real estate assets held by Central Public Sector Enterprises (CPSEs).

Presenting the Union Budget for 2026–27 in the Lok Sabha, Sitharaman said REITs have proven to be an "effective tool" for asset monetisation over the years. “I propose to accelerate the recycling of significant real estate assets of CPSEs through the creation of dedicated REITs,” she said during her 85-minute Budget speech.

REITs are investment vehicles that own or manage income-generating real estate, allowing investors to earn returns from rental income without directly owning property.

India currently has five listed REITs: Brookfield India Real Estate Trust, Embassy Office Parks REIT, Mindspace Business Parks REIT, Nexus Select Trust, and Knowledge Realty Trust. Of these, Nexus Select Trust is backed by rent-yielding retail assets such as shopping malls, while the remaining four focus on office properties.

This marked Sitharaman’s ninth consecutive Budget presentation, making her the longest-serving finance minister of the country. In office since 2019, the senior BJP leader is also the first full-time woman finance minister.

(With PTI inputs)