A lot has been written about these topics since budget, but don't expect lot of help to individuals in near term. The beneficiaries, in near term, would be the banks and real estate companies. The heavily indebted real estate companies will turn their office/ IT parks and Mall properties, essentially lease rental holdings, into Real Estate Investment Trusts (REITs) and realize lot of value or cash (selling shares in the trusts) that they can pay back to the banks. The REITs would mean a lot to the average Indians when the future REIT investments go into quality affordable housing, which is in much shortage in India. Rent is the biggest component of any middle-class working individual across the globe. So, a professionally managed community/ society aimed at maximizing rentals with superior upkeep will be a welcome for India's middle-class who dream of quality housing which is also 'affordable'. But, the funds flows will definitely have an impact on the real estate prices as the best of the locations will be bid for premium prices.
REITs as an investment will be popular in India as Indian investors swear by real estate. If the objective to collect rents, REITS provide access to investors to well located, well maintained rental holdings on a piece meal basis/ shares. Usually, 90% of rents collected need to be distributed as dividends compulsorily with some tax breaks as well. An ideal investment choice in the US/ West to park retirement money.
REITs as an investment will be popular in India as Indian investors swear by real estate. If the objective to collect rents, REITS provide access to investors to well located, well maintained rental holdings on a piece meal basis/ shares. Usually, 90% of rents collected need to be distributed as dividends compulsorily with some tax breaks as well. An ideal investment choice in the US/ West to park retirement money.
