How Real Estate Industry Welcomed New FDI Norms?

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How Real Estate Industry Welcomed New FDI Norms?
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The cash-starved real estate sector got a new
boost and hope for growth with the governments
decision to remove all restrictions on foreign
direct investments into the real estate and
construction sector. Although a three-year
lock-in period norm will continue unchanged, but
only for some selective projects. Below-mentioned
are some quotes showing how the real estate
industry welcomed the new decision. These
include "This will have a huge positive impact
on the housing sector as a whole, but much more
so on the affordable housing segment, which was
so far not a beneficiary of FDI in any
significant manner," said Anuj Puri, chairman
country head at real estate consultancy JLL
India.
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The relaxation of the lock-in period comes as a
major relief for the industry. The new rules
allow FDI in smaller projects, which is a big
relief. Besides, by doing away with the lock-in
period, the government has now made the norms
much simpler, In a significant step, the
government also allowed foreign investors to
invest in completed project for "operation and
management," says Akash Gupt, executive director
at PwC."The notification eases foreign investment
rules in India's construction sector, which has
been troubled by problems such as paucity of
funds and regulatory bottlenecks, said Sachin
Sandhir, global managing director, emerging
business, and managing director, South Asia, RICS.
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Property consultant JLL India Chairman and
Country Head Anuj Puri said "The government has
really liberalised the FDI rules for construction
sector. This will bring a lot more excitement and
interest from foreign equity players to invest
into real estate for development of residential
and commercial buildings". The removal of
restriction on minimum development area will not
only boost affordable housing but inner-city
development, he added. With the new norms, the
growing demand for ready to move flats in
Ghaziabad Noida and Gurgaon with be solved in an
amicable manner.
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