Relaxed foreign investment norms in real estate soon

 It is no secret that the growth momentum of Indian real estate had slowed down in recent times. But it is no secret either that the realty arena is making a comeback at a fiery pace. The all important government authorities have got their act together and humungous growth is back on track.

In a move which is all set to trigger further growth in real estate the mighty union cabinet has excluded many longstanding provisions in the FEMA – Foreign Exchange Management Act on 7th of May. The move will lead to an increased investment in real estate. A few other positives have emerged as well in the past few days. The vibrant and well renowned rating agency, ICRA, has predicted that the demand for cement is all set to go up in the country. On the other hand, close to 22 realty developers have asked the government to completely cancel their proposed SEZs while 27 of them are seeking extension in the time required to finish their SEZs.

The Union Cabinet has strategically decided to abolish a few norms to relax the prevailing regulations as far as investment of foreign funds is concerned in REITs – Real Estate Investment Trusts. The previous norms had prevented inflow of the crucial foreign investments in real estate as investments in rent yielding or completed realty assets was absolutely prohibited. REITs usually tend to invest in office and retail commercial space but investment till now was possible only in under construction realty projects. Thus such a move will and is rightly expected to increase investments multifold.

India’s infrastructure, investment cycle and economy are all set to significantly improve as well. The production of cement has increased in the country already and the demand for it is expected to grow by a whopping 6 to 7% as well. Increased demand of cement is a direct indicator of improvement in the real estate space and the demand goes up only when the industry is witnessing a boom. Thus things are pointing in the right direction.

While, 27 real estate developers have asked for extension in the requisite timeline for them to successfully develop and handover their SEZs. Also 22 developers have asked to completely scrap their SEZs altogether. Just a few days back the government had to scrap many more SEZs. Thus in order to protect the development and growth of SEZs and real estate, the government is expected to relax norms for inducing investment and construction of SEZ.

These are just few of the instances where an immensely positive move and direction has been taken by the government to revive the realty space of India. So if you are an investor or an end user of real estate, then do not hesitate in jumping on the real estate bandwagon.

VIEW SOURCE:- https://www.madhyam.com/blog/relaxed-foreign-investment-norms-in-real-estate-soon/

Location: India

Comments

Post a Comment

Popular posts from this blog

Government’s New Housing Scheme Revolutionizes Middle-Class Homeownership

 In a groundbreaking move set to reshape the landscape of homeownership in India, the government has unveiled plans for a new housing scheme targeted at the middle class. This visionary initiative, announced by Finance Minister Nirmala Sitharaman in the Interim Budget 2024-25, aims to address the housing needs of individuals currently residing in rented accommodations, slums, chawls, and unauthorized colonies. By replacing the erstwhile Credit Linked Subsidy Scheme (CLSS), this new endeavor seeks to empower middle-class families to realize their dream of owning a home. 1. Bridging the Gap: The Vision for Middle-Class Homeownership Finance Minister Sitharaman’s announcement underscores the government’s commitment to providing better housing solutions for the middle class, echoing Prime Minister Narendra Modi’s pledge in his Independence Day Speech. The proposed scheme targets those living in urban areas, particularly in rented houses or informal sett...
Read more

Choosing the Top Residential Property in Gurugram: An Expert Guide

Marvels Gurgaon, a bustling metropolis in the NCR region, stands as a beacon of urban development and prosperity for   Property Investment in Gurgaon. With its burgeoning job market and diverse infrastructure, the city has become a hotspot for residential living and Property Investment in Gurgaon. In this comprehensive guide, we unveil the top 10 residential  property in Gurugram , each offering its unique charm and appeal. Golf Course Extension Road, Gurgaon, Where Best Luxury Apartments in Gurgaon Experience upscale living in the southern part of Gurgaon, where Golf Course Extension Road reigns supreme. Boasting luxurious apartments, villas, and gated communities, this area is a haven for those seeking refined living amidst verdant greens. Property in Gurugram, Sohna Road, Gurgaon, The Epitome of Convenience Sohna Road emerges as a rapidly developing locality, connecting Gurgaon to Sohna town. With a range of housing options from affordable to premium...
Read more

A Detailed Review of Spectrum Metro, Noida

Spectrum Metro is yet another high end project located in Sector 75, Noida by Spectrum Group. The project offers a perfect balance of retail, hospitality and commercial spaces under a single roof, making it the only project of its kind in the area. Offering serviced apartments, retail shops and office spaces, Spectrum Metro is sure to host a number of ventures very soon. The builder has paid keen attention to make the project appealing not just from a design and concept perspective but also in terms of functionality and connectivity as well, making it a perfect commercial project. Having a 1 km long frontage will sure add to the overall value of the project along with entrances from all four sides, making it a very easily accessible project.  Spectrum Metro  itself is located right next to sector 50 metro station which makes it a very approachable project for regular commuters. All spaces within the project are perfectly designed for maximum visibility which would help in in...
Read more