Davos: Real Estate Investment Trusts or REITs will be a "booster rocket" for investments coming into India and realty players are awaiting more clarity on the proposed new instrument, JLL India chairman and country head Anuj Puri has said.
He also expressed hope that the government would provide more clarity on 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 $8-10 billion in next five years.
The Securities and Exchange Board of India (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 Mr 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 year to monetize commercial assets.