Foreign Direct investment in Real Estate
Fast and steadily growing economy of India, has a huge real estate industry amounting to about US$ 12 billion. Meticulous studies reveal that this real estate industry of India has been constantly growing at a high rate of 30% for last several years. After the Agriculture sector, the Real Estate sector of India, is the second biggest employer in the country, and possesses immense potential for foreign direct investment for diverse purposes, especially after the liberalization of FDI norms recently by the Government of India in 2005. So far, it is found that majority of the real estate developments have been made in the fields of residential housing facilities, and the remaining in the IT/ITES offices, business enterprises, hotels, hospitals, shopping malls, and industrial establishments. Today, abundant opportunities are available for foreign direct investment in real estate business of India, in these and other fields.
Today, along with NRIs and PIOs, foreigners are also facilitated to invest in the real estate sector of India in residential housing and townships, commercial premises, infrastructural facilities (at regional and local levels), technological parks, hotels & resorts, hospitals, educational institutions, industries, special economic zones (SEZs), retail, leisure and recreational amenities, etc, under the confinement of certain conditions. For wholly-owned subsidiaries a minimum capitalization of $10 million is made compulsory, and for joint ventures, it is $5 million. Again, a minimum of 25 acres of land coverage is desirable for FDI projects in real estate. AK JHA & CO., is one of the reputed legal organizations of India, helps comprehensively and expertly regarding these all types of FDI in indian real estate.
FDI in Real Estate sector in India
Companies, industries, and multi-mational corporations of the Information Technology and Outsourcing sectors are major and leading investors in the real estate of India, at present. According to an estimate, over 65 million square feet of IT space are to be developed in the next five years. Other popular means of FDI in indian real estate are residential and commercial complexes, amenities of the hospitality sector, industries, healthcare facilities, leisure organizations, and infrastructure. Easy and cheap availability of talented and skilled work force, lower casts of logistics, constantly expanding Indian market, steady growth of Indian economy, etc. have been attracting and enticing factors for diverse foreign direct investment in real estate business in all across India.
AK JHA & CO. helps well-rounded and offers discerning advice over all above categories of foreign direct investment in real estate business in India, through the Governmental and Automatic Routes. Our services for FDI in indian real estate, essentially deal with all Federal and State Laws governing the real estate transactions and investments in India, Property Taxation, and Stamp Duty applicable.