Reforms to Boost FDI in Real Estate Sector
The Confederation of Real Estate Developers’ Association of India (Credai) has expressed optimism about the upcoming reforms in the property industry, anticipating a significant surge in Foreign Direct Investment (FDI). According to Credai, the establishment of a government body, as proposed in the new Bill, is expected to increase FDI in the sector by at least 22 times.
### Enhanced Transparency and Investor Confidence
The reforms outlined in the forthcoming Bill are deemed acceptable to global investors, potentially unlocking a substantial inflow of funds. Currently, the sector attracts over $230 million annually, primarily from the US, Europe, and Gulf countries, for the development of large residential complexes across India. Post-reforms, this figure is projected to soar to 20-25 times the current annual investment.
### Conclave to Address Industry Challenges
To discuss and resolve various issues plaguing the realty sector, Credai is organizing a Conclave. This forum will bring together policymakers and industry stakeholders to frame new norms aimed at overcoming existing problems.
### The Real Estate Bill, 2013: A Regulatory Milestone
The Bill, tabled in the Monsoon Session of the Lower House and currently with a standing committee for further proposals, seeks to establish a governing body. This regulatory entity will safeguard buyer interests and promote the sector, addressing disputes and renovating the sector's image, which has been tarnished by reports of malpractices and delays in property transfers.
### India's Realty Sector: Investment Requirements
With an estimated $45 billion required for the growth of the realty sector, the current level of government support is deemed insufficient. Experts emphasize the need for substantial foreign investment to propel the sector towards better growth and development.