October 13, 2006	Friday	Ramazan 19, 1427

SINGAPORE, Oct 12: Asia is ripe for an "explosion" in real estate investment trusts (REIT) as China, Pakistan, Dubai and Saudi Arabia consider legislative reforms to boost the market, Standard and Poor's said on Thursday.

While growth in the Asian property and REITs market has lagged behind Europe and the United States, they offer huge potential, the US credit ratings firm said in a report.

In the third quarter to September, an index compiled by SP and Citigroup showed the Asia-Pacific property market rose 7.46 per cent from a year earlier, less than the 12.44 per cent growth in Europe and 9.75 per cent in the United States.

The Asia-Pacific REITs market expanded 8.32 per cent in the third quarter, compared with 16.59 per cent in Europe and 9.68 per cent in the United States.

"The region is ripe for a REIT explosion," the report said.

“Places like Dubai, Saudi Arabia, India, China and Pakistan are all actively considering REIT legislation and the potential for a real property boom is huge though the actual legislation may take time," it said.—AFP