What are the effects of REITs on real estate market?

Mr. Avdhesh Goel, JMD - Earth Group: REITs behaves like a typical small cap stock. But unlike a small cap stock, most of the expected returns of REITs comes from dividends and not from price appreciation. In fact, on an average about two third of REITs returns comes from dividends. So, REITs can be expected to exhibit sensitivity to interest rate changes. If, REITs comes to India then it will balance the overall market scenario, but one should look for long term investments to reap good profits.

Mr. Atul Gupta, JMD - Earth Group: I certainly feel that REITs dividends payouts would be higher than other forms of real estate investment. So, REIT should be welcomed by all.

Mr. Rajnish Mittal, JMD - Earth Group: REITs is going to change the nature of property investment, giving individual investors pure and easy access to high value properties which was previously reserved for big investors. REIT will give hope to lot of small investors and it will help market grow its liquidity potential.

Mr. Vikas Gupta, JMD - Earth Group: As per the historic performace to REITs, for past 25 years in international market, a 25% allocation to global listed property provided the highest return with the lowest level of volatility of returns for the growth portfolio. This signifies that value creation is going to be the next big challenge for real estate players if REITs comes to India.