The Prosperous Scenarios of FDI in Real Estate Market

1. The Prosperous Scenarios of FDI in Real Estate Market The Indian real estate industry saw colossal growth since the Government of India permitted foreign direct investment in the segment a decade ago. Tempted by high returns, the segment saw entrance of lots of foreign real estate investment companies. During those initial years, the industry attained new heights. As the economy gradually started to gain momentum, funds inflow started to upsurge and at present the Indian realty sector is one of the most profitable sectors and is constantly looking for foreign investor. Foreign direct investment has been the main growth driver for the nation's real estate sector. Comprehending the mammoth potential of the sector, Indian government is considering some main

2. modifications in foreign direct investment medians to boost flow of funds. The Urban Development Ministry has projected exemptions of all limitations including minimum region norms for project development for all real estate companies whose foreign possession is below 50%. Proposal to permit real estate businesses to sell undeveloped plots via automatic route conditional to permission by the Foreign Investment Promotion Board is also considered. The present foreign direct investment rules do not permit a company to sell out undeveloped plots, which forces them to keep the useless projects. The ministry has also recommended a non-resident investor in a real estate company to sell his shares to another non-resident stockholder free of cost. This would simplify liquidity issue of foreign investors fundamentally and boost their self- confidence. Government's initiative to set up a supervisory authority to shield customer's interest will also upsurge investment in the segment. A foreign investment is the procedure of a foreign based corporation setting up their processes in any other portion of the globe. The setting up of corporations is chiefly centered on the guidelines written in the Companies Act 1956. India has a pronounced potential to lure colossal foreign investment into the real estate sector. In developed nations, the segment has reached to a point of inundation. Consequently, worldwide players are eyeing at developing markets such as India for investments. However, the industry should look ahead towards snowballing transparency and improve assignment execution to upsurge inflow of foreign capital. One must solve land attainment postponements at the earliest to entice global companies to set up their operations in the nation. Notwithstanding numerous challenges, the Indian real estate industry is moderately optimistic. In the approaching days, chances in the sector will entice more foreign investment that will aid the industry to flourish.