FDI (Foreign Direct Investment)

Foreign Direct Investment in India Real Estate (FDI in Indian real estate)

Realspace, apart from being a property consultant and real estate agent, also facilitates FDI investment in Indian real estate as per FDI rules and regulations. Foreign Direct Investment in Real estate in India has to adhere to various norms and conditions set by the Government of India. Some of the FDI terms, conditions and important points are highlighted below.Realspace with its vast network of property professionals, domestic real estate funds, foreign real estate funds, provides real estate developers, land owners both individual as well as companies, corporate and access to realty funds for Joint ventures, FDI, SPV, etc. These real estate funds could be debt or equity based.

Terms - Foreign Direct Investment in Real Estate in India.A few of the conditions for certain categories for Foreign Direct Investment in Indian real estate are:

• One would have to develop a land area of atleast 10 hectares for serviced housing plots.
• In the case of construction projects,the minimum required built-up area is 50,000 sq metres.
• The FSI (Floor Space Index)/FAR (Floor Area Ratio) could be used to calculate the built up area.
• Mimimum Capitalization: USD 10 million - Wholly-owned subsidiary
• Mimimum Capitalization: USD 5 million - Joint Ventures
• Foreign Direct Investment in India Real Estate – Important Points
• After the commencement of the subsidiary's or Joint Venture's business, the investment is to be brought in a span of 6 months.
• In a time span of 5 years the project should be minimum 50 per cent executed Complete at least 50% from the date of obtaining all necessary clearances.
• The Foreign Direct Investment project is not allowed to sell undeveloped plots lacking infrastructure.
• The Foreign Direct Investment project is not allowed to sell undeveloped plots lacking infrastructure.
• The FDI funded project is supposed to develop infrastructure for the said project.
• Before selling it is supposed to avail the completion certificate from the relevant local authority.
• The original investment cannot be repatriated before 36 months from completion of minimum capitalization.
• In case a prior exit is required the Foreign Investment and Promotion Board has to be requested for an approval.
• All the laws, rules, regulations of the particular state have to be adhered to.

FDI in Real Estate in India - Highlights

From March 2005, the industrial policy and promotion department of India has permitted allowed Foreign Direct Investment (FDI) in Indian real estate projects having an area of atleast 25 acres and in construction with approval for projects including commercial real estate projects having built-up area in excess of 50,000 sq mtrs.

Non-resident Indian (NRI) investments are allowed under every category.

IT park and hotel investments - FDI has direct & automatic approval.

If you are a property / real estate developer or a land owner looking for Joint ventures or real estate funding options, simply click here.