Will REITs impact the Indian real estate market?



Staff member
There is a suggestion that REITs (Real Estate Investment Trusts) are having a major impact upon the Indian real estate market. What is you view on the impact of REITs and do you think it is fair they receive various tax breaks?


New Member
The Major Benefits of REITs :
REITs provide opportunity to retail investors to take exposure in properties which they otherwise would not have been able to take.
Retail investor can quickly liquidated their position as the units are publicly traded (mandatory norm as per Real Estate Investment Trusts Regulations, 2013)
Rs. 1000 crore of corpus is the minimum threshold limit for REITs. This provision aimed to ensure only large assets and established players enter the market.
Minimum unit size is Rs 1 lakh and minimum investment option is Rs 2 lakh to take participate in REIT.
REITs are managed by professional managers which usually have diverse skill bases in property development, redevelopment, acquisitions, leasing and management, etc.
REITs bring in transparency and accountability in the real estate sector.