All major economies in Europe will have a tax-fiendly real estate investment trust (REIT) structure within two to three years, Nick van Ommen, ceo of European Public Real Estate Association (EPRA) forecast during the last day of Expo Italia Real Estate in Milan. 'About EUR 1,000 bn of the world's EUR 16,000 bn worth of real estate is listed today, or about 6.59%,' Van Ommen said. 'In Italy, this figures is as low as 0.82% at the moment, or about EUR 6 bn of the total EUR 742 bn of assets.'
All major economies in Europe will have a tax-fiendly real estate investment trust (REIT) structure within two to three years, Nick van Ommen, ceo of European Public Real Estate Association (EPRA) forecast during the last day of Expo Italia Real Estate in Milan. 'About EUR 1,000 bn of the world's EUR 16,000 bn worth of real estate is listed today, or about 6.59%,' Van Ommen said. 'In Italy, this figures is as low as 0.82% at the moment, or about EUR 6 bn of the total EUR 742 bn of assets.'
Following the introduction of REITS, known as SIICs, in France in 2003, the total volume real estate assets held by listed entities in the country rose from EUR 12 bn in 2001 to EUR 24 bn last year. Van Ommen said this figure is expected to increase to EUR 84 bn by 2011. 'In Europe, the listed market passed from EUR 94 bn in 2001, to EUR 175 bn in 2006. And it is expected to reach EUR 585 bn by 2011. Why should Italy be different?’ Van Ommen asked. As the current Italian volume of EUR 6 bn is double that of the 2001 level, he said it can grow to EUR 71 bn within the next five years - if the right REIT structure is introduced as planned this year.