The international players who are interested in real estate india feel happy as indian government is going to allow foreign direct investment (FDI) up to 49% secondly they can avail tax benefits for real estate mutual funds which is going to be a reality very soon.
A guidline is in the final state in the pipeline of Sebi which will allow retail investors to enjoy the remuneration of booming domestic real estate market by owning a piece of it.
REITs is the organization constituted by many companies which is engaged in buy, sell, manage and develop real estate assets. So investors who want a pastry of real estate market action can buy shares in a REIT. The income made by the REIT from its property investments will be distributed to these share holders also.
A Sebi official said, “We are waiting for Amfi and ICAI to give us the final suggestions about NAV calculation and disclosures.Once that’s done, we will announce the final guidelines for realty funds. NAVs and disclosures have been the bone of contention for the officials framing policy on such funds.”
To evaluate the value of real estate property at a regular interval is a difficult task which is also depend upon the valuer also. Sebi is also likely to announce which entities would be allowed to launch such a fund and the minimum investment amount for investors.
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