Budget 2013 Property: Introduction of investment trusts for real estate welcomed

Plans to further strengthen the commercial property sector — through the introduction of Real Estate Investment Trusts (REITs), which allow for investors to finance property investment in return for attractive yields and special tax considerations — have been widely welcomed as one of the main positives from yesterday’s budget proposals.

Michael Noonan, the finance minister, said the introduction of REITs may attract new investment and assist Nama in deleveraging its portfolio.

They may also allow it to “bring more sustainable activity to both the commercial and residential property markets”, he said.