Paschal Donohoe says increase in apartment output justifies tax breaks for REIT funds

Public Expenditure Minister credits institutional investors with the 'dramatic' rise in the number of apartments being built

Public Expenditure Minister Paschal Donohoe defended the REIT tax breaks, saying: '[T]he same programme exists in most of the countries that we compete with for foreign direct investment.' File picture: Damien Storan/PA

Controversial tax breaks for investment funds which run apartments were justified and are the reason so many apartments have been built, Public Expenditure Minister Paschal Donohoe has said.

Real Estate Investment Trusts (REITs) are companies that earn rental income from commercial or residential property. They were introduced by Fine Gael to help kickstart the then flat construction sector.