Source: Indiarealtynews.com
Global credit rating firm Moody’s has asked the Indian government to draft a regulatory and taxation framework for the market to introduce real estate investment trusts (REITs).
A higher transparency makes REIT an easier and convenient way to make investments. They stand for core characteristics of modern economies. And, India is a country with a fast flourishing economy which should introduce them, says John Kriz, managing director of real estate finance.
Recent initial public offerings (IPOs) of Indian real estate companies had brought forward the vibrancy and potential of sub continent’s property sector. However, the decision lies with the Indian government whether it wants to go further with the suggestions.
Kriz overlooks the poor reforming record of the present and previous governments, although Moody’s acknowledged great improvement and transparency in store for Indian real estate, says the data showcased in a press statement.
India’s continued economic growth and future prospects largely depend on the property infrastructure, adds Kriz.
The economy requires a boost in the growth of industries, hospitality sector, and retail segment in order to develop. It is actually the question of how the system can be arranged, says Kriz further highlighting the trends of Indian real estate.
REITs are unlikely to bring any major changes in the trend to date for foreign direct investors who focus their attention on major cities. It is only local investors targeting secondary and other emerging cities.
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