While the world financial markets have nosedived, some markets like India continue to look strong, mainly due to their conservative banking systems. But the cash flow for the developmental process has become a bit difficult, causing problems in the development process. Banks may still want to wait before sanctioning funds, but housing is a fundamental need and developers need funds to go ahead with developmental plans. In this scenario, real estate trusts (REITs) and real estate mutual funds (REMFs) are the answer to an uninterrupted cash flow in real estate development, while offering ownership opportunities of homes for a lower amount.
Countries around the word invest in real estate through various REIT and REMF schemes. In India too people are looking forward to these products for investments. More so, as they offer direct benefits of owning and liquefying properties. India expects to add 17.6 million households by 2010. Most developers feel that a considerable amount of research is required before things are in place. Examples from other Asian countries are ready models to study. Overall, the developers and investors are awaiting the entry of the two products.
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