REIT would encourage investments into real estate sector, says consulting firm CBRE
The Real Estate Investment Trusts (REITs), notified by market regulator Securities and Exchange Board of India, would encourage more investments to come into the sector, real estate consulting firm CBRE said Wednesday. Market regulator SEBI had notified the REITs regulations in 2014, allowing setting up of and a listing of such trusts, which are very popular in developed countries.
"REIT will not only allow consumers' participation but also make investments come in (to the real estate sector)", Chairman of CBRE, India and South East Asia, Anshuman Magazine told reporters here. CBRE clocked revenues of USD 14.2 billion globally in 2017 and has over 450 offices worldwide. The Indian subsidiary has managed capital of Rs 241 billion for its clients across the country.
Noting that India was a key market for CBRE, he said the domestic business was expected to fuel growth and development in the country. "Close to 40 per cent of hiring is concentrated in the Southern markets, thereby indicating the strong potential of these geographies.", he said. According to a CBRE report 'Destination 2020', Chennai has the right ingredients to sustain long-term investments, including availability of manpower, social and physical infrastructure. The infrastructure and policy initiatives of the state government are expected to augment supply for both residential and commercial segments, it said. The report predicts that the Old Mahabalipuram Road Zone 1, Zone 2 and Mount Poonamallee Road are expected to witness quality supply of real estate projects in addition to more than 10 million square foot in the next two-three years.
(With inputs from agencies.)