FDI in real estate may double after easing of rules: NAREDCO
Cabinet relaxed FDI rules in construction sector by reducing minimum built-up area as well as capital requirement
Oct 31, 2014
Source : The Economic Times
Real Estate

 

NEW DELHI: Foreign direct investment (FDI) in the real estate sector could jump over two-fold in the next one year with easing of FDI rules in the construction sector, realtors' body NAREDCO said today.

Real estate developers and consultants were of the view that this move would give fillip to cash-starved realty sector, which is reeling under a slowdown since last 2-3 years. It will help developers in raising funds to complete projects.

Yesterday, the Cabinet relaxed FDI rules in construction sector by reducing minimum built-up area as well as capital requirement and easing the exit norms.

"Reduction in minimum built-up area to 20,000 sq meters from 50,000 sq meters and reduction in capital investment to $ 5 million from $ 10 million has the potential to more than double FDI inflows into housing, commercial real estate, hotels and townships in the next one year," NAREDCO Chairman Navin Raheja said in a statement.

In 2013-14 fiscal, the FDI in construction development, which include housing and township, was $ 1.22 billion. During April-August period of this fiscal, the sector has attracted $ 446 million worth FDI.

Hailing the move, India's largest realty major DLF Group Executive Director Rajeev Talwar said: "Praise to the Finance Minister for being so prompt in meeting the requirements of this industry in his budget announcement, then approval for Real Estate Investment Trusts and now relaxation in FDI norm. There will be huge amount of FDI inflow in this sector".

Unitech MD Sanjay Chandra said this would "surely provide a boost to the real estate industry and go a long way in fulfilling Prime Minister Narendra Modi's dream of creating smart cities throughout the country."

Permission to sell completed projects to foreign investors will help Indian developers get much needed liquidity into the system, Chandra added.

Parsvnath Developers Chairman Pradeep Jain said: "We are thankful to government for this move. The sector is reeling under acute funding pressure. The foreign investment in real estate has also gone down in last few years. Hence, this move has sent a positive signal for the real estate sector".

Terming the decision as a positive development, realty consultant CBRE South Asia CMD Anshuman Magazine said: "Real estate and infrastructure industry is starved of funds. This announcement will widen the base of investors, especially mid-sized financial institutions."

It would also encourage new development projects in prime areas of large cities and in tier II towns, Magazine added.

Property consultant Cushman & Wakefield said the move is likely to give fillip to real estate sector. This step would be beneficial for the next phase of urban development.

Latest Realty News

Finish existing projects before starting new ones, builders told
Oct 31, 2014
NOIDA: Real estate body Credai on Thursday said it has urged builders in NCR to not launch new projects before completing existing ones
Land pooling is against SC ruling: CPM
Oct 31, 2014
GUNTUR: Coming down heavily on the State government, CPM affiliated raithu sangham has said that the entire process of land pooling is against the Supreme Court (SC) directives and norms of Land acquisition Act
DDA told to seal revised master plan
Oct 31, 2014
NEW DELHI: The urban development ministry on Thursday directed Delhi Development Authority (DDA) to finalise the revised Delhi Master Plan
Bhubaneswar Development Authority City Centre future tense
Oct 31, 2014
BHUBANESWAR: The Bhubaneswar Development Authority (BDA) has recommended the general administration (GA) department to take back a vast patch of land, where BDA City Centre (earlier Nicco Park), is running
Enforcement directorate plans to attach Seashore property
Oct 31, 2014
BHUBANESWAR: The enforcement directorate (ED) is planning to re-attach the Seashore Group's properties, which were earlier seized by the Crime Branch
BMC to lease out spaces in markets
Oct 31, 2014
Bhubaneswar: The municipal corporation has decided to lease out its share of space to traders and business houses after it failed to sell them
HCL chairman Shiv Nadar buys Rs 115 crore Delhi bungalow for daughter Roshni
Oct 31, 2014
NEW DELHI: In one of the latest bulge-bracket property deals in the national capital, HCL chairman Shiv Nadar has bought a bungalow in the Friends Colony East area of Delhi for Rs 115 crore
Real Estate Industry Hails Government Move to Ease FDI Rules
Oct 31, 2014
New Delhi: India's real estate industry hailed the government's decision to relax FDI rules in construction sector
Easier FDI in real estate means govt is inflating India’s urban housing bubble
Oct 31, 2014
New Delhi: India's relaxed rules for foreign direct investment (FDI) in construction will make it easier for foreigners to invest in real estate
Delhi Development Authority to have incentive policy for green buildings soon
Oct 30, 2014
NEW DELHI: The Delhi Development Authority is drafting a policy on financial and non-financial initiatives to promote green buildings in the national capital

Latest Realty News Of State

Realty Talk's