Venture in Indian Real Estate Is Beneficial

At Present Indian Real Estate properties are growing higher rates with rapid techniques. A greater numbers of real estate companies are towards this sector to take advantage of the opportunities. Indian properties are a mounting sector for both people and those who are searching for a house and it is helping the country's economy too. After a slow start, foreign investment in Real Estate is ready for quick investments of more than 10 billion U.S. dollars, probably in the near future. From investor to consultant to construction companies and developers, real estate in India is experiencing a huge change in this type of operations.

Indians who are living abroad (NRIs) and "persons of Indian Origin" (PIO), investing properties in India are financially satisfying because it assists them to uphold attachment with their homeland. Mumbai once considered as cheapest cities of India, but today the infra-structure and development in Mumbai has gone higher. It resembled a significant improvement in all the areas of real estate, such as residential, commercial, retail.

Many multinational companies established their business in the city, a sudden increase in the quantity of possible property developers might be seen. There is having global standards of expending more money and by use other resources. Suburban areas with new properties that include South Dum Dum, South Suburban City, Hugli, etc. It provides as a point for the country's eastern region and is therefore a key location for all commercial and retail activities across India. Arrivals of International Company had a greater impact on Mumbai real estate. Arrival of MNC, IT companies and other large organizations in Mumbai has led the masked demand for luxury and high-end properties. Professional staffs of these organizations are given huge salary, so they desire fully furnished luxurious homes in place of regular apartments and affordable housings. Many Non Resident Indian investors are purchasing lands in Mumbai and investing for the property, thus contributing to the growth of the country.

Govt may ease FDI norms in real estate to boost sector

Foreign investors looking to invest in the real estate sector in India may be allowed to bring in only $5 million as minimum capital, down from the current $10 million, if the Cabinet approves the proposal of relaxing the conditions for FDI in the sector.

As per the extant foreign direct investment policy, though 100 per cent FDI in the construction development sector is allowed through automatic route, the department of industrial policy and promotion (DIPP) is looking at relaxing the conditions for investment to boost the cash-strapped sector.

"We have proposed reduction in the minimum capitalization for wholly-owned subsidiaries from $10 million to $5 million. The funds will have to be brought in within six months of commencement of business of the company. This has been done keeping in mind low and affordable housing," an official told The Indian Express.

The official added that the Cabinet note will be circulated this week for comments. Further, the department has also done away with the concept of built-up area. Instead, carpet area has been introduced in line with the real estate (regulation and development) bill, 2013. Introduction of the concept of only 'carpet area' will curb unfair trade practices.

The minimum area to be developed in case of serviced housing plots has also been "reduced to 5 hectares from 10 hectares while in case of construction-development projects, a minimum carpet area of 20,000 sq mts has been introduced instead of the existing 50,000 sq mts built-up area in all class-I cities having population of more than one lakh."

"However, dealing in land and immovable property will not be allowed," the official said.

From 2000-2013, $22.43 billion has flown in the sector in form of FDI, comprising 11 per cent of the total FDI flow in the country. In April-July 2013-14, $2.09 billion flew in the construction development sector including townships, housing, built-up infrastructure. 

Source: http://www.indianexpress.com/news/govt-may-ease-fdi-norms-in-real-estate-to-boost-sector/1183596/