Axe on tax will attract FDI in realty: APREA

Following the easing of foreign direct investment (FDI) norms in real estate, a lot of foreign companies have shown interest in the otherwise sluggish real estate sector.

Foreign investors believe that India’s real estate has great potential on this front but there are also some obstacles for example like taxation REITs that need to be addressed.

Speaking about the potential of India to attract capital into the realty space, Peter Verwer, CEO Of The Asia Pacific Real Estate Association told CNBC-TV18’s Kevin Lee that there was a need to make a slight change in the tax policies of India because no market that charges double taxes to its foreign investors has been successful. So, if the government were to look into this matter then there was no doubt of India becoming a magnet for capital, said Verwer.

The Asia Pacific Real Estate Association (APREA) is a non-profit industry association that represents and promotes the real estate asset class in the Asia Pacific region. It is the industry body for the suppliers and users of capital in the real estate sector.

The economic fundamentals are very clear and the view on India is become more and more positive. “India in many ways is on a separate track where the economic indicators are far more positive plus India gains a benefit from the recent shockwaves in China,” said Verwer.

If the government were to focus on the weak legislation that would be an absolute game changer for India and shift the dial in terms of international perception, he said.

Article sourced

Leave a Reply

Your email address will not be published. Required fields are marked *