Unit holders in special economic zones (SEZ) are likely to start operations during the second half of 2019
Unit holders in special economic zones (SEZ) are likely to start operations during the second half of 2019 in order to avail tax incentives before the sunset date, property consultant CBRE said in a report. Tax incentives granted to both developers and occupiers of SEZs will expire on March 31, 2020.
This will ensure that space take-up in this segment remains high and vacancy levels remain in single digits at least till the end of 2019, it said. “In case the government decides against modification of the sunset clause or extension of the sunset date, we can expect a rationalisation in the overall leasing activity in SEZs with occupier decisions based upon well-thought out CRE strategies rather than tax benefits only,” the report said, adding that corporates looking for large contiguous spaces for consolidation might still continue to evaluate SEZs, irrespective of the sunset clause.