Tuesday, February 26, 2008
FDI contributing to an organized Indian real estate
Real estate industry in India is presently worth $12 billion and is growing at the rate of 30 per cent per annum. The importance of real estate sector in India can be gauged from the fact that it is the second largest employer next only to agriculture.
With growing opportunities, major asset management firms from abroad are investing in the local Indian market. India is poised as the most favorite FDI destination in South East Asia, outpacing China. The real estate market in India is flooded with overseas funds. FDI in India is expected to increase to US$15 billion this year, triple the 2004 figure.
With the amendment of the Indian government in March 2005, FDI was relaxed up to 100 per cent in the construction business. This amendment has cleared the path for foreign investment to meet the demand into development of the commercial and residential real estate in India. It has also encouraged several large financial firms and private equity funds to launch exclusive funds targeting the real estate sector. This is definitely a step towards making the sector more organized. It will contribute to increased professionalism followed by creation of a healthy and competitive market environment for both domestic and foreign players with the hope of bringing in superior technology and liberalization in India. Rationalization and liberalization measures in the FDI policy has resulted in a surge in the inflows into such sectors creating opportunities for foreign investors and NRIs to invest in India.
Now, FDI in townships, built-up infrastructure and construction-development projects (which would include, but not be restricted to, housing, commercial premises, hotels, resorts, hospitals, educational institutions, recreational facilities, city and regional level infrastructure facilities, such as roads and bridges, transit systems etc), have been allowed under the automatic route.
is access to a consolidated document that clearly specifies all the clearances required with details on
all the concerned agencies and the procedures, so that they are clear on the legal requisites before
they make a commitment on the funds.
Everybody is talking about "How big the Indian Real Estate market is going to be" or "How fast it is going". The government is supposedly going all out to sustain its growth. But amongst all these hype, are we leaving behind an average Indian? why are the benefits of a booming market not passed on to the end users?
Any Answers..
i fully agree to your point unknown user, the indian government is not doing much to safeguard the interest and to protect the common man of the country. owning a house in india for a common middle man is all together a dream. The story is like rich is becoming richer and pr is going all down the drain....What the government does and believe in doing is just to fight amongst each oder and make their bank balance hefty........
i fully agree to your point unknown user, the indian government is not doing much to safeguard the interest and to protect the common man of the country. owning a house in india for a common middle man is all together a dream. The story is like rich is becoming richer and pr is going all down the drain....What the government does and believe in doing is just to fight amongst each oder and make their bank balance hefty........