We are delighted to witness this moment wherein the regulators have recognized fractional ownership industry as a potent and emerging investment avenue and are taking strides towards introducing a formal regulatory framework.
In 2014 when SEBI regularised REITs, it helped build a massive credibility for the industry taking the asset class to the next level. While the conversation introducing regulations for FOPs is still at the initial stage, it is a very much needed step towards creating investor confidence and boosting high return oriented CRE investment in India.
It is a momentous development and boost for the whole real estate industry. It will increase the depth of the sector by bringing in scale, taxation benefits of REITs and regulatory framework.
Apart from the boost in the domestic market, this move will also help attract more oversees investment in Indian real estate recognizing the potential and rising demand for quality infrastructure in different verticals.