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ACC CW Case

The Indian real estate sector is a significant contributor to the GDP, projected to reach USD 1 trillion by 2030, with the introduction of REITs allowing retail investors to participate in commercial real estate. The document outlines an investment advisory task comparing real estate stocks and REITs, focusing on market analysis, performance comparison, advantages and limitations, and recommendations for investment. The expected deliverable is a comprehensive analysis of risk-return dynamics and suggested investment options in both avenues.

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Aanchal Sahoo
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17 views1 page

ACC CW Case

The Indian real estate sector is a significant contributor to the GDP, projected to reach USD 1 trillion by 2030, with the introduction of REITs allowing retail investors to participate in commercial real estate. The document outlines an investment advisory task comparing real estate stocks and REITs, focusing on market analysis, performance comparison, advantages and limitations, and recommendations for investment. The expected deliverable is a comprehensive analysis of risk-return dynamics and suggested investment options in both avenues.

Uploaded by

Aanchal Sahoo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Background

The Indian real estate sector is one of the largest contributors to the country’s GDP, accounting
for nearly 7-8% of the GDP and projected to reach USD 1 trillion by 2030. Traditionally, real estate
investments in India have been dominated by individual buyers, high-net-worth individuals
(HNIs), and institutional investors. However, with the introduction of Real Estate Investment
Trusts (REITs), the sector has undergone a transformation, offering retail investors an opportunity
to invest in income-generating commercial real estate with relatively lower capital outlay.
Evolution of REITs in India
The Securities and Exchange Board of India (SEBI) introduced the REIT framework in 2014, with
the first successful public listing—Embassy Office Parks REIT—taking place in 2019. Since then,
multiple REITs, including Mindspace Business Parks REIT and Brookfield India REIT, have been
listed, attracting significant domestic and international investor interest.
Problem Statement
You are an Investment Advisor representing a prominent institutional investor seeking to expand
their portfolio by investing in the Indian real estate sector. The investor is specifically evaluating
two potential avenues:
- Stocks of real estate developers (publicly traded companies involved in residential,
commercial, and infrastructure development), and
- Real Estate Investment Trusts (REITs) (publicly listed trusts that own and manage income-
generating real estate assets).
Task:
As the investment advisor, your role is to present the detailed analysis that provides the investor
with a clear comparison and advisory on investing in real estate stocks vs. REITs. Your advisory
should cover the following:
1. Market Analysis:
Analyze the current trends and growth outlook for both real estate developers and REITs in India.
2. Performance Comparison:
Evaluate the historical and projected performance of real estate stocks versus REITs in terms of:
- Total returns (dividends, capital appreciation)
- Volatility and stability
- Liquidity and market exposure
- Compare the risk-return profiles of both avenues.
3. Advantages and Limitations:
Identify the benefits and drawbacks REITs, including:
4. Advisory and Recommendations:
Present a data-backed advisory report with:
- A detailed comparative analysis of real estate stocks and REITs.
- Suggested real estate stocks and REITs worth considering, supported by rationale,
performance indicators and expected returns.
Expected Deliverable:
Prepare a detailed analysis into the risk-return dynamics, performance indicators and
recommendation of real estate stocks versus REITs.

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