Expectations from Budget 2017: Real estate FDI should Grow
May 23, 2017 Real Estate News
Back in 2011 when the world was going through some serious economic crisis, India incurred huge foreign investment of around $1.3 billion. The investments have dropped following the year due to changes in foreign policies and relaxation in FDI norms, even though India continued to grow in foreign investment.
Other sectors have managed to gain FDI, the investment in real estate hasn’t shown any impressive rise. According to the Department of Industrial Policy and Promotion (DIPP), the foreign investment in real estate from the year 2011-15 has only been 9 percent out of the total investment made by foreigners in India.
Project delays, corruption, policy lag have reduced the interest of potential foreign investors.
According to the World Bank investment report, India has crossed $300 billion dollar FDI landmark in December. Reports also stated that 33 perecent of the property belongs to the Mauritians who have taken the advantage of the avoiding double taxation with the treaty signed between India and Mauritius. However, there has been no sign of improvement in the real estate in terms of foreign investment, even though the second half of the year was better.
Experts suggest that 2017 will be a better year in terms of investment in real estate. More foreign investment is expected and with strict policies in sight, the future looks good.
Recently Japan has shown interest in building three smart cities. Chinese enterprises are raising bids to build industrial towns in India that will help in creating smooth infrastructure for their business.
The government has promised to build smart cities but no actual transaction has happened in past two years with the foreign counterpart which has to raise eyebrows at the promise made by the government. RTI has asked for an explanation from the government regarding the same.
Budget 2017 is expected to bring relief to investors both national and foreign. It is expected to give real estate more attention and help revive the current state of the real estate sector. Laws and policies like RERA, GST, RITs have come as a relief to the investors and it is expected to bring more and more genuine investors.
Other sectors have managed to gain FDI, the investment in real estate hasn’t shown any impressive rise. According to the Department of Industrial Policy and Promotion (DIPP), the foreign investment in real estate from the year 2011-15 has only been 9 percent out of the total investment made by foreigners in India.
Project delays, corruption, policy lag have reduced the interest of potential foreign investors.
According to the World Bank investment report, India has crossed $300 billion dollar FDI landmark in December. Reports also stated that 33 perecent of the property belongs to the Mauritians who have taken the advantage of the avoiding double taxation with the treaty signed between India and Mauritius. However, there has been no sign of improvement in the real estate in terms of foreign investment, even though the second half of the year was better.
Experts suggest that 2017 will be a better year in terms of investment in real estate. More foreign investment is expected and with strict policies in sight, the future looks good.
Recently Japan has shown interest in building three smart cities. Chinese enterprises are raising bids to build industrial towns in India that will help in creating smooth infrastructure for their business.
The government has promised to build smart cities but no actual transaction has happened in past two years with the foreign counterpart which has to raise eyebrows at the promise made by the government. RTI has asked for an explanation from the government regarding the same.
Budget 2017 is expected to bring relief to investors both national and foreign. It is expected to give real estate more attention and help revive the current state of the real estate sector. Laws and policies like RERA, GST, RITs have come as a relief to the investors and it is expected to bring more and more genuine investors.
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