Practitioners’ Insights: Real Estate Investments and Changing Global Paradigm—Perspectives on the India Opportunity

CFA Institute Live Webinars

Presentation

Recorded 13 February, 2024

Overview

Over the past few years, real estate investments have undergone significant changes in underlying assumptions and thought processes on their valuation. The Covid-19 pandemic not only affected the commercial real estate market but also altered the dynamics of the residential real estate market. This crisis was followed by monetary easing and overheating of the economy. As interest rates started to go up in response, the real estate market underwent a churn. As uneven recovery across markets followed, the need for a more nuanced approach on investment decisions emerged. In addition, sustainability and environmental, social, and governance (ESG) issues started to play an important role in asset section and portfolio construction in micromarkets. Other relevant issues for this sector include the popularity of real estate investment trusts (REITs) and fractional ownership as well as an increased usage of technology and the power unleased by platforms in which consumers and providers can interact freely. This webinar will discuss these issues as well as how investors should think about real estate investments as well as the different subclasses in real estate assets. The presenter will address several of these issues, including available investment avenues in different segments globally and locally; the pros and cons of these segments, likely yields, and risk matrices; the evolution of REITs over the past few decades; and the broader macro-opportunity for real estate investments in India.

Learning Outcomes:

Develop an understanding of the major characteristics of real estate investments. Discuss the pros and cons associated with a yield comparison of different segments and how to make a suitability assessment as per investor requirements.
Learn how to evaluate quality of investments and characteristics of micromarkets. Discuss measures to gauge governance quality as well as observations on channel checks and how to spot opportunities.
Discuss key observations from the current state of real estate market in India and the future trends we may witness over the next few years. Build knowledge with a focus on REITs and real estate hospitality opportunities with these specific characteristics.

This is the archived version of a live webinar that took place on 18 January 2024

Practitioners insights real estate investments and changing global paradigm perspectives on the India opportunity

About the Speaker(s)

Nikhil Shah, CFA, is a banker turned real estate professional and is a seasoned expert with 16 years of experience in the hospitality and banking sectors. With a deep understanding of the real estate industry, he is also an expert in a wide range of hospitality assets. Shah embarked on his career journey by spearheading fundraising initiatives and crafting compelling pitch books for a private equity–funded hospitality company. This experience paved the way for his transition into different roles across India. His comprehensive understanding of financial feasibility and analysis, coupled with extensive market research, have enabled him to provide valuable insight on the relevant areas . With his deep insight on markets, Shah leverages his expertise in raising debt and equity, negotiating management agreements and contracts, and conducting comprehensive valuations. Shah has combined his profound industry knowledge with his financial expertise to offer unparalleled insight and solutions.

Pankaj Sharma leads capital markets policy for CFA Institute in India. In his role, he is responsible for advocating policy positions on issues that affect Indian capital markets and stakeholders across a broad spectrum, including corporate governance issues; environmental, social, and governance (ESG) and sustainability topics; use of technology in capital markets; and demographic influences and local factors on markets. He is frequently quoted in media. Sharma has more than 20 years of experience in financial services. Before joining CFA Institute, Sharma was an award-winning and globally rated equity analyst covering a diverse set of sectors in India and abroad for global investment banks. He holds a master of business administration from FMS Delhi and a B Tech from Indian Institute of Technology, Kharagpur. Sharma is a published author on topics at the intersection of economy, society, and technology with globally recognised brands, including Bloomsbury and Routledge/Taylor & Francis.

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