Finance ministry officials and RBI plan to meet to discuss relaxing external commercial borrowing norms to enhance affordable housing projects in India.
The report outlines Chennai's real estate market dynamics, emphasizing service tax changes, ECB, and a projected influx of 67,500 residential units within three years.
Budget 2012-13 proposes external commercial borrowing for affordable housing, a Credit Guarantee Trust Fund, and increased Rural Housing Fund provisions. Real estate players express disappointment, citing increased costs from the cement industry tax and service tax hike.
DLF's plans to buy out DE Shaw's investment in DLF Assets may face hurdles due to a FEMA rule classifying fixed-return equity investments as debt.
RBI's rate cuts and government stimulus aim to revive the housing market, but developers say more is needed to address credit flow challenges.
Foreign investment in India's real estate grows, despite recent regulatory challenges. Investors eyeing second-tier cities for deals. Minimum project area, capitalization, and time constraints are highlighted.