Removing the last hurdle for REITS, i.e., the withdrawal of dividend distribution tax (DDT) will finally pave the way for their introduction in India. Once in play, REITs will bring in lot more investments in real estate space and will create much needed liquidity among the market participants. As a matter of fact, the announcement of deduction of Rs. 50,000 per annum in interest for home loans up to 35 lacs for homes costing not more than 50 lacs is a welcome move and will give an impetus to demand in the housing spectrum will encourage customers awaiting to buy their homes. Moreover, with the Indian government confident of meeting its fiscal deficit target, further rounds of interest rate cut is expected will further boost the real estate sector by bringing much needed affordability into the market and that the planned increase in spends on Infrastructure sector specifically in road and rail sectors again augur well for real estate with the linkages that both sectors are expected to provide, he insisted.
