tondon

Previously, only NRI’s and PIO’s were allowed to invest in the housing and the real estate India sectors. 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 (JV) company along with a local partner.

India fully opened FDI in real estate India in 2005. However, norms issued later made a minimum capitalization of $10 million for wholly-owned subsidiaries and $5 million for joint ventures mandatory. The government also imposed a minimum area requirement. 

The department of industrial policy and promotion had in March 2005 allowed FDI in real estate India in projects in a minimum area of 25 acres.

The finance ministry has allowed external commercial borrowing (ECB) in realty projects involving integrated townships of 25 acres or 50,000 sq m. However, the Reserve Bank of
India has not yet notified it.

Trackback URI | Comments RSS