REIT receives enthusiastic response

Easy and dedicated access to institutional financing, higher limit on external commercial borrowings (ECB) will attract more investments and assure sustained growth of affordable housing in India, making it the core driving segment for real estate.

Stating this, Sriram Kalyanaraman, Managing Director & CEO, National Housing Bank, said the Foreign Direct Investment (FDI) and Foreign Institutional Investors (FIIs) will also play a key role in boosting supply of houses and infra projects in urban areas.

He said this while inaugurating an ASSOCHAM National Summit on Housing Finance for All in New Delhi on 10 May 2018.

He also called for the development of a secondary mortgage market either in the form of RMBS (Reverse Mortgage Backed Securities) or Covered Bonds.

“Simplification of external commercial borrowing (ECB) guidelines has opened a new window of funding for housing finance companies in India, increasing the prospects of a fresh round of overseas borrowings”, he said.

“The Real Estate Investment Trust (REIT) is another instrument that has potential to transform the Indian real estate sector, especially in commercial real estate and rental housing.

“The advent of REITs in India has been greeted with a lot of enthusiasm by many market players, added Kalyanaraman. fii-news.com