Global firms eyeing the Indian real estate sector
Following the Government of India's decision to relax foreign direct investment (FDI) norms, global property and equity firms are eying the Indian real estate market. Companies from several Asian countries including Malaysia and Singapore are looking forward to venturing into the Indian market.
Notably, a few days back, the Central Government eased FDI norms that included cutting down of the minimum built-up area (20,000 sq mt from 50,000 sq mt). The initial capital requirement was cut down to USD 5 million from 10 million. Following it, many real estate developers are holding talks with foreign firms. However, it will take some time before FDI starts to flow in.
Boost for the sector
The reality sector has hailed the Government's decision to ease the FDI norms. The sector is facing issues regarding capital, and entry of foreign firms would solve it to a great extent. Relaxation would widen the base of real estate investors and will encourage developers to come up with new projects in tier II cities. With real estate companies sitting high on inventory levels, the relaxation has come at an opportune time.
India property: A huge investment opportunity
The Indian real estate sector holds a tremendous potential. India is one of the most promising economies in the world with the country's reality sector making a significant contribution to the GDP. Rapid urbanization and infrastructure development present a tremendous opportunity for global firms to invest in residential and commercial real estate. With the expansion of cities and development of mega cities, the sector presents immense growth opportunities.
Real Estate Investment Trusts: Game changer for the sector
Real estate investment trusts (REITs) have played a crucial role in boosting investors' confidence. REITs have been a long demand among developers since they bring more transparency into the sector. It also allows diversification of and solves liquidity crunch. Such trusts have existed in several countries and have been hugely successful. Not only will it make the sector more competitive, but also help developers launch projects at par with international standards.
With the Government's vision to develop 100 smart cities in the country, the sector needs the expertise and funds. Inflow of funds from foreign companies will provide the much-needed strength to the sector.
Notably, a few days back, the Central Government eased FDI norms that included cutting down of the minimum built-up area (20,000 sq mt from 50,000 sq mt). The initial capital requirement was cut down to USD 5 million from 10 million. Following it, many real estate developers are holding talks with foreign firms. However, it will take some time before FDI starts to flow in.
Boost for the sector
The reality sector has hailed the Government's decision to ease the FDI norms. The sector is facing issues regarding capital, and entry of foreign firms would solve it to a great extent. Relaxation would widen the base of real estate investors and will encourage developers to come up with new projects in tier II cities. With real estate companies sitting high on inventory levels, the relaxation has come at an opportune time.
India property: A huge investment opportunity
The Indian real estate sector holds a tremendous potential. India is one of the most promising economies in the world with the country's reality sector making a significant contribution to the GDP. Rapid urbanization and infrastructure development present a tremendous opportunity for global firms to invest in residential and commercial real estate. With the expansion of cities and development of mega cities, the sector presents immense growth opportunities.
Real Estate Investment Trusts: Game changer for the sector
Real estate investment trusts (REITs) have played a crucial role in boosting investors' confidence. REITs have been a long demand among developers since they bring more transparency into the sector. It also allows diversification of and solves liquidity crunch. Such trusts have existed in several countries and have been hugely successful. Not only will it make the sector more competitive, but also help developers launch projects at par with international standards.
With the Government's vision to develop 100 smart cities in the country, the sector needs the expertise and funds. Inflow of funds from foreign companies will provide the much-needed strength to the sector.