Realty sector turns optimistic with new state reforms in FDI: FICCI
New Delhi, Dec 8 : According to a report by FICCI, Indian real estate has attracted about USD 24.16 billion FDI in construction development sector during April 2000 to September 2015.
Central government under the leadership of Narendra Modi, had recently announced path breaking reforms for construction development sector with the aim to attract more foreign capital into the cash-strapped realty sector.
The FDI reforms announced by the DIPP for construction development sector is expected to provide a new direction to foreign investment regime for realty sector, help real estate industry to tide over financial crunch and may help industry and Government in achieving the mission of 'Housing for All by 2022'.
Though the real impact of latest FDI liberalization measures on foreign investments in Indian real estate will be reflected over a period of time FICCI has undertaken a quick survey amongst various stakeholders comprising developers, investors and consultants in order to assess the mood of real estate industry and their perception on relaxed FDI norms for real estate sector.
According to the FICCI survey, industry is happy and satisfied with current FDI reforms in construction development sector and has shown high level of confidence and optimism towards future flow of foreign capital into realty sector.
Commercial and retail segment and residential real estate will significantly gain from current FDI reforms. Majority of the respondents has ranked the commercial and retail sector at the first position.
Almost all the respondents felt that government's decision to allow exit and repatriate foreign investment before the completion of project under automatic route, but with a lock-in-period of 3 years for each tranche of investment and transfer of stake from one non-resident to another non-resident, without repatriation of investment and without any lock-in period or any government approval is a path breaking step. It will cheer foreign investor community and will have a major impact on attractiveness of Indian Real Estate going forward.