Rising prices of property, delayed construction, no clarity on Foreign Direct Investment and REITS, ghost buyers are some of problems crippling the growth of the sector.
This incredible growth is mainly attributed to the off-shoring business, including high-end technology consulting, call centres and software programming houses.
Evidently, this is the ideal time to invest in the country, even as the policy makers have begun to emphasize on developing adequate infrastructure for the country.
After agriculture, the real estate sector is the second largest employment generator in India. The persistent demand from the Information Technology IT sector has also impacted the urban landscape in India.
As per estimates, there is demand for 66 million square feet of IT space over the next five years. Several multinational companies continue to move their operations to India to make the most of lower costs of skilled manpower and logistics.
Human resources being the key element in the IT industry, the hiring and housing of people, both at their work place and home, has assumed great significance.
As such, there is a persistent need to create space for people to work and live, which in turn sets off the growth of other allied infrastructure. Though the real estate sector in India is asserted to be the most promising sector today, it is still hugely plagued by market uncertainties and traditional inhibitions.
The real estate market in India mostly continues to remain unorganized, fairly fragmented, mostly characterized by small players with local presence. Foreign investors, other than NRIs, were allowed to invest only in development of integrated townships and settlements, either through a wholly owned subsidiary or through a joint venture company in India, along with a local partner.
Major corporations are taking initiative and are wooing international players soliciting investments for major projects.
FDI in Real Estate: The minimum area to be developed under each project would be as follows: The funds would have to be brought in within six months of commencement of business of the company.
Original investment cannot be repatriated before a period of three years from completion of minimum capitalization.
The investor would not be permitted to sell underdeveloped plots underdeveloped connotes, where roads, water supply, street lighting, drainage, sewerage and other conveniences as applicable under prescribed regulations, have not been made available.Beside percent relaxation of FDI in real estate, the government policies on FDI also offer opportunities for foreign investors to invest in different sectors.
This includes percent in power trading, processing, development of new airports, laying of natural gas pipelines, petroleum infrastructure and warehousing of coffee and rubber. A foreign direct investment (FDI) is an investment in the form of a controlling ownership in a business in one country by an entity based in another country.
It is thus distinguished from a foreign portfolio investment by a notion of direct control. India is evolving as one of the most favored destination for FDI in Asia and the Pacific (APAC).
It has displaced US as the second-most favored destination for foreign direct investment (FDI) in the world after China and vantage of FDI in real estate for Indian economy can be extracted by the fact.
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Foreign Direct Investment in India in Real Estate Sector eas and is on boom now. This article throws light upon the Opportunities and Legal Structure for FDI in India in Real Estate Sector with.
India’s new real estate and infrastructure trusts The way forward torosgazete.com India’s real estate industry has witnessed a paradigm shift from The liberalisation of foreign direct investment (FDI) rules for the real estate sector, opening up of the domestic fund.