Published & Updated as on - 2010-02-22
Foreign investors have remained
bullish on India's housing, real estate and construction sectors in the last
two years, undaunted by scarce global financial resources.
Foreign
Direct Investment (FDI) in terms of inflows into equity in the Indian
construction and realty sectors have seen a sharp rise from USD 1.19 billion in
April-December 2007 to USD 5.6 billion in the first three quarters of the
current fiscal, as per the official data.
In March 2005, the government had liberlaised the foreign
investment norms with a view to catalysing investment in the realty sector.
The
government allows 100 per cent FDI through automatic route in construction
development projects, including housing, resorts, commercial premises,
educational institutions, recreational facilities, city and regional level
infrastructure and townships.
Though the FDI norms were liberalised in 2005, the
government had imposed certain conditions like a lock-in period on repatriation
of investment for three years.
The repatriation could only be allowed with permission of
Foreign Investment Promotion Board.
Global property consultant Jones Lang Lasalle Meghraj in a
report said, "Contrary to the commonly held belief of capital flight
occurring during 2008, the actual deployment of FDI into India's real estate
sector increased 29 per cent year-on-year during the financial year 2009."
Dubai-based
Emaar is a major foreign investor which has entered the country in a big way.
Source: Economic Times 21/2/10
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