Realty firms gain as govt eases FDI norms for construction
The government has eased foreign direct investment rules for the construction sector to attract more money into the country to build new hotels, housing and townships
Dec 04, 2014
Source : Business Standard


Mumbai: Realty companies have gained between 1% to 3% on boosted by government's decision to lower built-up area and minimum capital requirements which need to be met by construction companies before accepting any foreign investments.
The government has eased foreign direct investment rules for the construction sector to attract more money into the country to build new hotels, housing and townships.
has taken the lead with a gain of more than 3.5% followed by Projects, up 1.5%, HDIL, up 1.4% and Oberoi Realty, up 1%.
Under the new rules, foreign investment is now allowed in projects with a minimum built area of 20,000 square metres, down from a previous 50,000 threshold. The minimum capital investment by foreign companies has also been halved to $5 million, the government said in a statement.
Government has already allowed 100% foreign direct investments (FDI) in the realty sector with certain conditions like the lock-in period of three years during which the investments cannot be repatriated.
The realty sector received around $ 1.2 billion in the form of FDI in the last financial year which ended on 31st March, 2014. In the preceding financial year the figure was $1.3 billion.
This decision by government will help early realization of PM Modi's ambitious plan to build 100 'smart cities' by 2020.

BSE Realty index is up 0.3% at 10:19 hrs.

Latest Realty News

DLF plans to sell 50% in Cyber City to raise over Rs 3500 crore
Dec 04, 2014
Mumbai: Real estate major, DLF has initiated a process to sell 50% of its subsidiary, DLF Cyber City Developers (DCCD) to raise over Rs 3,500 crores
Essel Group acquires Rs 400 crore worth property in Mumbai
Dec 04, 2014
MUMBAI: The city's second-biggest ever office purchase marks stunning recovery from lows for its beleaguered commercial property market
Takers for DDA flats despite 5-year rule
Dec 04, 2014
NEW DELHI: Despite DDA's best efforts to keep speculators out of their latest housing scheme, successful applicants are receiving offers for their flats based on a General-Power-of-Attorney (GPA) transfer of rights
Developer sells residential plots, cheats 78 buyers of 5 cr
Dec 03, 2014
NOIDA: A real estate company has been booked for allegedly duping 78 people of Rs 5 crore, on the pretext of selling residential plots
Builders to pay pending fee for bylaw violation
Dec 03, 2014
GHAZIABAD: The Ghaziabad Development Authority has now discovered that many builders in the district had paid 'compounding fee' less than what was due from them from early 2012
First big survey records illegal realty chaos, pins few violators
Dec 03, 2014
PUNE: A month after a five-storied illegal building collapsed in Narhe Ambegaon, highlighting the brazen disregard for rules on the city's fringes, the district collectorate released data of the month-long survey of such buildings
Compensate land-losers as per new law: HC to govt
Dec 03, 2014
HYDERABAD: Adding a new dimension to the ongoing saga of the Hyderabad Metro Rail, the high court directed the authorities to determine and pay compensation in tune with the new Land Acquisition Act to all those who are going to lose their shops, buildings and land
Cabinet clears building laws - Move paves path for plan approval
Dec 03, 2014
Patna: The state cabinet gave its nod to the “Bihar Building Byelaws 2014” to regulate construction activities in the state
Tata Housing receives top honours at the Golden Peacock Awards 2014
Dec 03, 2014
Mumbai: Tata Housing, one India's fastest growing real estate companies, announced its recent win at the prestigious Golden Peacock Awards 2014, for their commitment to 'Sustainability' in the 'Real Estate' sector
Housing prices stable during July-September in Delhi-NCR: Report
Dec 03, 2014
NEW DELHI: Real estate market in the national capital region remained sluggish during July-September with no increase in the average housing prices

Latest Realty News Of State

Realty Talk's