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Real Estate Forum on Reits

Real Estate Property Discussion Forum and Guide to Real Estate Queries

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Q: I am a student of Insurance Management. I am working on a project on Property Insurance with specific focus on Risk Management of Civil construction projects.I want know about REIT.
In an article I recently read there was something about banks playing a major role in REIT.The article read

" It is also expected that the banks in India can be a major contributor of assets in REITs. These banks own vast commercial real estate for their offices and branches. These assets can be revalued and swapped into a REIT and the asset can be leased to the banks. This would enable the money raised to flow back to the bank for shoring up their balance sheets, and at the same time be a very stable asset for the investors."

The article also mentioned about Budget 2016 exempting REIT from dividend distribution tax.I want to know how it will benefit the Real Estate sector.

The link to the article is
http://naredco.in/Article-details.asp?id=160&prYear=2016
Latest Answer: Thanks everyone for answering my question.Really appreciate !!
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Q: REITs is going to become a realty in India soon as government removed DDT on them.
Latest Answer: Yes, for your knowledge i would like to tell you that currently, DDT is applicable at 15% on special purpose vehicles owning the assets and is seen as a huge interruption to the introduction of REIT investments, essentially making them less attractive.
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Q: Government should exempt investors from taxes like stamp duty, tax on rent, and transfer of assets and distribution of dividends.
Latest Answer: Hi everybody, Currently, REITs are facing challenges on factors like distribution of 90% of net distributable income after tax to investors; stamp duty charges that can range from 5% to 12% of the property value and minimum alternative tax (MAT), which also discourage developers to firm up REITs plan.
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Q: The Union government may consider removing stamp duty on transfer of properties by private individuals and firms to real estate investment trusts that are expected to get listed on stock market beginning April next year.

Latest Answer: DLF has also announced plans to start 2 Reits, with one exclusively for commercial office space by end of this financial year. The company has made public plans to monetise about 30 million sq-ft office and retail space.
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Q: I am planning to buy property in Palghar should i wait for REIT Is REIT going to help investor in property

Latest Answer: As i know, it is an investment trust where an individual can invest either by purchasing their shares directly on an open exchange or by investing in a mutual fund that specialize in public real estate. An added benefit to investing in REITs is the fact that many companies are accompanied by dividend reinvestment plans (DRIPs). Among other things, REITs invest in shopping malls, office buildings, apartments, warehouses and hotels.
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Q: How Budget 2015-16 affects real estate sector?
Latest Answer: It is very crucial to understand that "Housing for all by 2022" is a bigger term than what is being understood by the common public. There is lot more to it than just providing houses to everyone. The government has planned to not only build more houses, but to redevelop slums, decrease interest for poor section, involving private sector and also aid urban poor for renovating the existing homes.
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Q: Is it true that incorporation of REIT under Foreign Exchange Management Act will fast-track developers & industry watchers listing in the domestic market?
Latest Answer: We are looking forward to seeing REITs launched in India in the coming year. Industry wide, there will be limits on what assets can be transferred to REITs. A significant part of that needs to be discounted for quality. We don't see the opportunity for significant non-office REITs, particularly residential, as the rental market is quite informal and break into pieces.
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Latest Answer: Hi Mr Roy , According as far as anyone is concerned, the revelation to present "Benami" Property Transaction Bill could further guarantee more straightforwardness in this manner making a more expert environment in the division. As a twofold digit GDP development has been evaluated by the legislature over the long haul, this will make a positive business circle for general segment. We would have additionally gotten a kick out of the chance to see some ambitious motivating forces for Sustainable Development in land.
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Q: How Indian Real Estate Market will likely fair in 2015?
Latest Answer: Hey Guy's The Union Budget 2015 may have disappointed most the builders and the developers around the country as the finance Minister did not announce any measure to benefit either demand or supply in the sector. But the increase in service tax can effect the market too. The only positive thing that come out of the budget 2015 for real estate was the tax clarification on REITs. But the market participants will always hopeful and have a positive outlook for the year.
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Q: The affordable housing sector was expecting that the Modi govt, like last time, would extend some support to it and solve the difficulties. But hopeless result.
Latest Answer: Good evening friends, It is really a good news as it will increasing the standards of living by giving proper homes and subsidised interest rates to EWS and LIG groups will not only aid in fulfilment of their social needs but also help everybody associated with the real estate sector. We are happy with this decision and welcome it wholeheartedly.
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