Ten real estate shares fell by 0.06% to 4.77% at 12:05 IST on BSE after Finance Minister in the Union Budget 2014-15 proposed to provide necessary incentives for introducing real estate investment trusts.
Unitech (down 4.77%), Godrej Properties (down 4.64%), Sunteck Realty (down 2.86%), Sobha Developers (down 2.76%), Oberoi Realty (down 1.08%), Parsvnath Developers (down 0.97%), HDIL (down 0.78%), Anant Raj (down 0.61%), Indiabulls Real Estate (down 0.12%) and D B Realty (down 0.06%), edged lower.
However, Phoenix Mills (up 4.93%), Prestige Estates (up 4.49%), Peninsula Land (up 2.87%) and DLF (up 1.01%), edged higher.
The S&P BSE Realty index was down 0.53% at 1,904.59. It outperformed the S&P BSE Sensex, which was down 0.95% at 25,204.
In an bid to boost investments in the real estate industry, Finance Minister Arun Jaitley today, 10 July 2014, said that the government intends to provide necessary incentives for introduction of real estate investment trusts (REITs). He also said that REITs would be given a tax pass-through status to avoid double taxation.
REITs are expected to attract more global investment and bring transparency into the real estate sector.
REIT is like a mutual fund, except that it invests in real estate instead of securities. REITs own, and in most cases, operate income-producing real estate. Their portfolio consists of many types of commercial real estate, ranging from office and apartment buildings to warehouses, hospitals, shopping centers, and hotels.
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