4.
With the current Real Estate boom and the market being flooded with Initial Public Offer of various listed Real Estate companies in India it will be the best time for investors to own a share of the profiting market economy.
5.
Legislative framework, revised investment norms and a favourable investment opportunity, and a clear taxation policy will provide the right kind of investing opportunity in India in the time to come.
The primary difference between Real Estate Investment Trusts and a mutual fund is that investments made in the former are traded in Real Estate stocks and not invested in company stocks moreover they provides a heavier liquidity than the mutual funds.
Global scenario of REITs
3.1 Introduction Real estate investment trusts (REITs) in the United States and Listed Property Trusts (LPTs) in Australia have a long and successful history as effective real estate investment vehicles. In recent years, REITs have expanded internationally, with REIT markets being established in Asia and Europe. In Asia, REIT markets have been successfully established in Japan, Singapore, South Korea and Taiwan, with REITs also established in Hong Kong, Malaysia and Thailand late in 2005. 3.2 Chronology of the Development of Real Estate investment Trust Table 3.1 Year 1880 1930 1960 1980 Events Origins of REIT in order to avoid double taxation Tax advantage, reversed and all passive investments were taxed Reestablished the special tax considerations qualifying REITs as pass through entities REIT investment increased, with the elimination of the certain real estate tax shelters.