Saturday 13 January 2018

Budget 2018 wish list: Smooth launch of REIT, infra status to real estate

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BUDGET 2018 - Prime Minister Narendra Modi’s plan of building homes for all by 2022 is set to boost the economy by $1.3 trillion, create 60 million new houses and over 2 million jobs annually.

The year 2018 is likely to be steady in terms of institutional investment into real estate. More long-term and patient capital from stronger entities such as pension and sovereign funds is expected to enter the sector.

We may also see a return of some equity investments in the residential sector.

graphKey issues or areas of concern for the sector

* Rental yields in India are among the lowest in the world at 2.2%
* Complex regulations at the municipal level such as construction permits and property registration

Industry wants

* Grant infrastructure status to real estate, SEZs and industrial parks

* Include stamp duty as a part of GST

* Smooth launch of India's maiden Reit this year, with all tax and regulatory hurdles crossed

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