Davos: The real estate investment trusts will be a "booster rocket" for investments coming into the country and realty players are awaiting more clarity on the proposed new instrument, according to JLL India's Chairman and Country Head Anuj Hari.
He also expressed hope that the government would provide more clarity on Real Estate Investment Trusts (REITs) before the Union Budget.
JLL India is a real estate consultancy firm.
"REITs will be a booster rocket for investments into the country, and I will be holding my breath for much-anticipated announcement (regarding REITs) during Finance Minister Arun Jaitley's speech next month," he said.
The newly created REITs, which can be listed and traded on stock exchange like shares, are expected to become avenues which will raise USD 8-10 billion in next five years.
Markets regulator Sebi notified REIT regulations in September 2014.
"It does seem that much-awaited clarifications on REITs in India will come in much before the next Union Budget. I have pinned considerable hopes on this, myself.
"With so much happening on the larger Asian front, India cannot afford to be left behind," said Puri, who is here to attend the World Economic Forum annual meet.
Along with foreign investors, domestic institutions like insurers, pension funds and provident funds would also be allowed to invest in REITS, which would get tax incentives.
To ensure transparency, REITs would be subject to stringent norms on disclosure as well as related party transactions.
Companies like DLF have plans to launch REITs next fiscal to monetise commercial assets.
