Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

REITs – The Upcoming Real Estate Growth Story in India

67 views

Published on

REITs (real estate investment trusts) sounds pleasant, but most of us do not know about this. It was implemented in 2014 under the income tax law of 1961 in our country.

Published in: Real Estate
  • Be the first to comment

  • Be the first to like this

REITs – The Upcoming Real Estate Growth Story in India

  1. 1. REITs – The Upcoming Real Estate Growth Story in India
  2. 2. REITs (real estate investment trusts) sounds pleasant, but most of us do not know about this. It was implemented in 2014 under the income tax law of 1961 in our country. Cushman & Wakefield & RICS reports say that: "The investment opportunities in India's top eight cities, including the Delhi, National Capital Region, Bangalore, Mumbai and Pune (Source: The Economic Times), are valued at $44-440 billion." What does it mean? Will this give the Indian real estate industry to bring a gradual change? Let's find it here
  3. 3. A REIT is a:  A public or private company that owns real estate interests or real estate debt.  Pass most of the revenue and capital gains to shareholders.  REITs provided are taxable only on retained earnings which meet, • Ownership requirements • Management requirements • Asset demand • Income requirements • Distribution requirements  Industry Association: National Association of Real Estate Investment Trust
  4. 4. 1) Equity REITs  Owns and operates revenue- generating real estate, including leasing, real estate development, and tenant services  REITs must be acquired and/or developed for operation  Once developed, you can no longer sell these properties Continue...
  5. 5. 3) Hybrid REITs  Own attribute  Loans to real estate owners and operators 2) Mortgage REITs  Direct loans to real estate owners and operators  Indirect borrowing through mortgage- backed securities  Only in the existing real estate extension of the mortgage loan
  6. 6.  The Possibility of high returns - Commercial real estate pays long-term returns. If we talk about the U.S. market, the average annual rate of return for the first five years was 12.34%.  Optimal Allocation - Investment is expected to deliver significant returns as 80% of the funds pooled by the investors will be used to complete the project's revenue. Only 20% of the amount will flow into the mortgage guarantee, the equity share of the listed property and so on.  Security - Investing in real estate investment trusts is safe; players with a minimum asset size are established. at 100 billion rupees which will enter the market. Rs 2,50 crore have been identified as their lowest initial quotes.  Unorganized sector benefits - The Commercial real estate in India will benefit. According to a joint report titled "India REIT: Closer Reality," REITs will benefit from 1.73 billion square feet of the commercial real estate in retail, office and warehouse operations. Real estate investment trusts may own the real estate industry because most of the trusts will be listed on the stock market.
  7. 7. Real estate investment trusts may help organize the industry in a better way in the coming years. The abolition of the Foreign Investment Promotion Board (FIPB) will attract foreign investment in India and make the economy even broader.  REIT will become more popular  Market size will be Increase to 60%  Active in financial markets
  8. 8. Address: Plot No. 01, Block CC-1, Sector-32, Noida - 201301, Uttar Pradesh, India Promotor No.: UPRERAPRM5087 Source: http://www.wavecitycenter.in/blogs/real- estate-research/reits-the-upcoming-real- estate-growth-story-in-india/
  9. 9. THANK YOU

×