REITs can be a change to the real estate business
Property market experts have welcomed the Securities and Exchange Board of India’s (Sebi) green signal to set up real estate investment trusts (REITs). It will fund builders constructing commercial properties.
The REITs being given a go ahead by Sebi will enhance the depth of the country’s commercial market which will offer financing as well as exit options to developers and investors. The approval couldn’t have come at a better time keeping in mind the prevailing paucity of funds coupled with an economy that is on the verge of reaching the takeoff stage said Shishir Baijal who is the Chairman & Managing Director, Knight Frank India.
Sachin Sandhir who is the MD, RICS South Asia added that the move by Sebi to issue guidelines for REITs is laudable as this would bring in positive sentiments and clear confusion in cash strapped real estate sector. REITs specifically will prove to be an effective tool for enhancing investments into the commercial real estate. REITs only look at completed, income generating projects, so risks are less for investors.
REITs are being looked at as a remedy to the real estate business.
Source: The Times of India
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