India’s central bank will permit regulated lenders to extend credit to real estate investment trusts (REITs) beginning July 1, a policy shift expected to broaden capital access for income-generating property portfolios. The move marks a significant recalibration of prudential norms, enabling banks to directly finance REIT structures rather than limiting exposure to underlying projects alone. Market participants view the decision as a catalyst for deeper institutional participation in commercial real estate, improved liquidity and potentially lower financing costs.