Detailed guidelines for the REIT regime start taking shape
The Modi government is trying hard to revive the real estate, infrastructure, manufacturing and all other sectors in India. In order to revive the real estate sector last month, the newly elected Union government unveiled a series of structural reforms. These recognize the need to provide alternative sources of funding to the real estate sector.
Out of all these the most significant measure was a directive issued to the Securities and Exchange Board of India (SEBI) to introduce Real Estate Investment Trusts (REITs). The success of REITs will depend on a range of factors, such as a comprehensive and clear regulatory framework that are yet to be established. Hence even though REITs were a long-awaited addition to the investment instruments in India, only time will tell how successful they would be.
Global property consultant CBRE, on Thursday released I-REITS in India- Critical Success Factors. This report runs through the various aspects that need to be addressed, and examines just how ready both regulators and the market are to do so.
Anshuman Magazine the chairman & MD of CBRE South Asia mentioned that the government must consult all stakeholders before releasing detailed guidelines for the REIT regime. He also mentioned that India needs favourable market conditions and a successful I-REIT market will require strong support from the existing landlords and investors.
Source- The Times of India
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