Real Estate


FDI Inflows to Real Estate

FDI Inflows to Real Estate sector in India has registered significant growth in the last few years due to the several incentives that have been provided by the government of India. The increased FDI Inflows to Real Estate sector in India have given a major boost to the country's economy.

Real estate sector in India:


The real estate sector in India is highly fragmented. According to the estimates of 2004- 2005, the real estate sector in India was worth US$ 12 billion. The majority of the developers in the real estate sector in India have only a regional presence. The involvement of large corporations is limited in the real estate sector in the country. The profit margins are higher in the sector of real estate in India in comparison to the foreign markets that are developed.

FDI policy in the real estate sector in India:


The government of India allows foreign direct investment up to 100% for the development of the real estate sector in the country. The guidelines for Foreign Direct Investments (FDI) in the real estate sector in India state that the minimum built up area should be 50,000 sq. meters for projects of construction development and the minimum area should be 25 acres for integrated townships.

Amount of FDI inflows to real estate sector in India:


FDI Inflows to Real Estate sector in India has increased over the last few years due to the fact that many international companies are investing in the sector. The Emaar Group has made an investment of around US$ 850 million in 2006 in the real estate sector in India. The Siachen Capital has invested in Nitesh Estates with total investments worth US$ 100 million in 2006. Further the FDI Inflows to Real Estate sector in India has come from Morgan Stanley Real Estate, which has made an investment of ` 300 crores in the Alhpa G Corp.

FDI inflows to real estate sector in India have developed the sector:


The increased flow of foreign direct investment in the real estate sector in India has helped in the growth, development, and expansion of the sector.

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