Real Estate Investment Trusts (REITs) in Mangalore: A New Trend

Real Estate Investment Trusts (REITs) in Mangalore: A New Trend

Mangalore, a port city in Karnataka, has always been a hub for real estate investments. With the emergence of Real Estate Investment Trusts (REITs) in the city, the investment game has taken a new turn.

REITs are investment vehicles that pool money from various investors and invest them in real estate assets such as commercial or residential spaces. The income generated from these assets is distributed among the investors in the form of dividends. REITs are quite different from the traditional methods of investing in real estate where investors purchase properties directly.

The introduction of REITs in Mangalore has been a game-changer for real estate investors. REITs allow investors to invest in real estate without the hassle of dealing with the property or the tenants. Moreover, they offer significant tax advantages for investors, making it a lucrative investment opportunity.

Several developers and investors have already started setting up REITs in Mangalore. One such example is the Mangalore-based developer, Brigade Group, which is planning to launch a REIT soon. The company is looking to raise funds by selling its commercial assets in Mangalore. This move will enable the company to raise capital and reduce its debt obligations. The REIT will be listed on the stock exchange, providing a platform for investors to buy and sell units easily.

Another prominent example of a REIT in Mangalore is the UB Group. The company has set up UB Investments, which has invested in several commercial spaces in the city. The company has also purchased the UB City Mall, which is regarded as one of the most prestigious commercial spaces in the city. By investing in REITs, investors are not just investing in the real estate market but also in the growth potential of the city.

REITs in Mangalore have attracted a lot of attention from investors due to the significant tax advantages they offer. The Securities and Exchange Board of India (SEBI) has confirmed that investments in listed REITs will be treated as long-term equity investments, offering a tax benefit to investors. Moreover, investors can avail themselves of a tax deduction of up to Rs 1.5 lakhs under Section 80C of the Income Tax Act, making it a very attractive investment opportunity.

The emergence of REITs in Mangalore has provided a new avenue for investors to invest in the real estate market. With the city growing at a rapid pace, these investments are expected to provide significant returns over the long term. Additionally, with the transparency of investments in REITs, investors can make informed decisions and manage their portfolios effectively.

In conclusion, REITs in Mangalore are a new trend that is poised to take the real estate market by storm. With the significant advantages they offer, both in terms of tax benefits and ease of investing, REITs are likely to become a preferred investment option for several investors. While it is still early days, the future looks bright for the real estate market in Mangalore, and REITs are set to play an integral part in its growth.