PE investors and overseas developers are looking to enter India’s industrial and warehousing sector by investing in various development projects.
Author Anuj Puri
The Budget that was being touted as a make-or-break one for the future of India, and the Government made some big announcements on the infrastructure front and also on beneficial changes to the affordable housing segment.
The formation of Real Estate Investment Trusts (REITs) will help in expansion of the quality real estate universe in India, besides giving developers another instrument to exit their projects.
Can a first-time home buyer looking at an affordable project get additional income tax incentives for at least five years? The Budget should throw more light on this. Any efforts in this direction would help the government move closer to its objective of delivering ‘Housing for All by 2022’.
The year 2016 has been an interesting one in more ways than one for real estate markets. A number of initiatives like the passage of the Real Estate Regulatory Bill in March 2016; amendments to REIT guidelines in Budget 2016-17, which exempted levy of dividends distribution tax paid by SPVs to a REIT; notification of the Benami transactions bill in August 2016; announcement of the third list of Smart Cities in September 2016 were just some of them.
So far, more than USD 2.8 billion worth of platforms are already in place, largely equity-based and showing a shift in focus to residential, especially the affordable and mid-housing projects. This model of investment is expected to grow further in the future.