Budget 2026: FM Sitharaman Proposes REITs for CPSE Land Asset Monetization
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Moneycontrol•01-02-2026, 12:01
Budget 2026: FM Sitharaman Proposes REITs for CPSE Land Asset Monetization
- •Finance Minister Nirmala Sitharaman announced in the Union Budget 2026 a proposal to establish dedicated Real Estate Investment Trusts (REITs) to recycle and monetize land assets held by Central Public Sector Enterprises (CPSEs).
- •This initiative aims to significantly boost the government's asset monetization plans, attracting large funds and institutional investors, as the REITs segment gains maturity and acceptance among retail investors.
- •Investors have consistently urged both Union and state governments to accelerate asset monetization, particularly for lucrative land parcels in prime real estate markets.
- •India currently has five listed REITs, with a total gross asset value exceeding Rs 2.3 lakh crore, primarily backed by office assets, except for Nexus Select Trust which focuses on shopping malls.
- •A 2021 CAG report highlighted challenges in CPSE land monetization, including legacy land use, encroachments, poor coordination, and bureaucratic delays, despite entities like Indian Railways holding vast land assets.
Why It Matters: FM Sitharaman proposes REITs to monetize CPSE land, aiming to boost asset recycling and attract investors.
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