NEW DELHI: The Union government will step up efforts to monetise real estate assets held by central public sector enterprises (CPSEs) through dedicated Real Estate Investment Trusts (REITs), Finance Minister Nirmala Sitharaman announced while presenting the Union Budget 2026–27 on February 1, 2026.
Highlighting the role of market-linked instruments in unlocking value from public assets, Sitharaman said that REITs have emerged as a successful mechanism for asset monetisation and the government will now accelerate the recycling of CPSE-owned real estate through such structures. The move is aimed at improving capital efficiency while generating recurring revenue streams for public enterprises.
Over the past decade, the government has undertaken multiple initiatives to enhance public infrastructure financing, including the introduction and scaling up of Infrastructure Investment Trusts (InvITs) and REITs, which have helped channel long-term institutional capital into infrastructure and income-generating assets.
Industry participants said the proposal could significantly deepen India’s listed real assets market. The Indian REITs Association (IRA) said dedicated CPSE REITs would enable faster capital recycling, strengthen balance sheets of public sector entities, and widen investor access to stable, income-generating assets through transparent and regulated platforms.
“The proposal reflects a shift from passive ownership to efficient, market-linked asset management, while unlocking long-term value from mature public assets and redeploying capital into fresh infrastructure development,” the association said.
Parveen Jain, president, NAREDCO said, the establishment of dedicated REITs to accelerate the recycling of significant real estate assets of CPSEs is also a welcome step. It will promote efficient utilisation of capital and assets while creating new investment opportunities for the real estate sector. With the government’s continued support for asset monetisation, this Budget creates a stable, reliable, and conducive environment for real estate development.
Ramesh Nair, managing director & CEO, Mindspace Business Parks REIT said, easing foreign individual participation in Indian equities, alongside dedicated REIT structures for CPSE asset monetisation, strengthens the pipeline for long-term institutional capital across real estate and infrastructure.
Anuj Puri, chairman, Anarock Group, said the intent is to attract institutional capital without diluting ownership control over strategic assets. “This move aligns with long-standing industry demands for simplified REIT taxation and broader participation, including small and medium REITs. However, clarity will emerge only after subsequent policy notifications lay out the operational framework,” he said.
Pradeep Aggarwal, founder & chairman, Signature Global (India), said faster recycling of CPSE real estate assets through REITs, along with continued emphasis on InvITs, would help deepen capital markets, improve liquidity, and bolster investor confidence across the real estate and infrastructure sectors.
