REITs to attract global pension funds: Sebi ED

MUMBAI: Market regulator Securities and Exchange Board of India (SEBI) is of the view that real estate investment trusts (REITs) will usher in a great deal of transparency in real estate and thus attract global pension behemoths and financial institutions of repute.

“Tax incentives are key to the success of real estate investment trusts (REITs) and infrastructure investment trusts (InvITs) as that would help attract more funds in a transparent manner into realty and infrastructure sectors. Additionally, compulsory listing of REITs will also usher in transparency in Indian markets,” Sebi Executive Director Ananta Barua said at a real estate conference organised by RICS, global body for standards and professionalism in the real estate and construction sectors.

Sachin Sandhir, Global MD- Emerging Business for RICS, said, “With the twin objective of spurring growth back and infuse more liquidity in to the real estate market, the Government’s move to set up the REITs is laudable. While REITs will provide investors an investment avenue, which is comparatively less risky than investing in under-construction properties, implementation will also give them easier exit  routes along with regular income in terms of returns.”

On the occasion, RICS and international property consultancy firm, Jones Lang LaSalle also released a joint report, ‘Office markets in India: Exploring the unexplored.’