Description
Presentation about FDI position in Real estate in India, real estate foreign investment rules in India, who are the players involved and various growth drivers.
FDI : Funding Options for Real Estate Development
The Theme of Presentation
?
FDI Position Rules People
?
?
?
Growth Drivers
Foreign Investment : Position
Foreign Investment : Position
Foreign Investment : Position
Foreign Investment : Position
Notwithstanding the deepening of the global financial and economic crisis, net inward FDI into India remained buoyant at US$ 27.4 billion during April-December 2008 (US$ 20.0 billion in AprilDecember 2007), reflecting the relative attraction of India as an investment destination.
US$ 31.7 bn during 2008-09
Foreign Investment : Rules
2005 Press Note 2 FDI relaxed
2001 Press Note 4 FDI in twonships 100 acre
10 ha. And 50k sq.ft. BU came in as new norms
FDI in Township of 100 acres allowed with three year lock in.
2000 Press Note 2 FDI by NRIs in Real Estate
FDI allowed for NRIs and relaxation of Norms
Foreign Investment : Rules
MINIMUM AREA TO BE DEVELOPED
? Serviced housing plots: Min.10 hectares/ 25 acres area ? Construction-development projects: Min built-up area of 50,000 sq mts ? Combination project: Any one of above two conditions
INVESTMENT CONDITIONS
? Min. capitalization: 1) WOS- US$ 10 million and 2) JV with Indian partner: US$ 5 million ? Funds to be brought in within 6 months of commencement of business ? Original investment cannot be repatriated before a period of 3 years from completion of minimum capitalization Investor may be permitted to exit earlier with prior Government approval
Foreign Investment : Rules
OTHER CONDITIONS
? At least 50% of project must be developed within of 5 years from date of obtaining all statutory clearances ? Investor not permitted to sell undeveloped plots** ? Project to conform to norms & standards laid down by respective State authorities ? Investor responsible for obtaining all necessary approvals as prescribed under applicable rules/bye-Iaws/regulations of the State ? Concerned Authority to monitor compliance of prescribed conditions by developer
Foreign Investment : Rules
Foreign Investment : Rules
? Investments by NRIs under FDI Route not subject to Press
Note 2 restrictions investment
? Investments through a foreign company not treated as NRI ? Under FDI regime, NRIs can invest in development of services
plots, development of townships, city and urban level infrastructure facilities, manufacture of building materials, housing financial institutions, etc through an Indian entity properties in India
? Under NRI regime, NRIs can also directly invest in immovable
FDI : People
Bankers Realty Funds
Consultants
Direct Networking International Players
Growth Drivers
Growth Drivers
Growth Drivers
THANK YOU
doc_508086586.ppt
Presentation about FDI position in Real estate in India, real estate foreign investment rules in India, who are the players involved and various growth drivers.
FDI : Funding Options for Real Estate Development
The Theme of Presentation
?
FDI Position Rules People
?
?
?
Growth Drivers
Foreign Investment : Position
Foreign Investment : Position
Foreign Investment : Position
Foreign Investment : Position
Notwithstanding the deepening of the global financial and economic crisis, net inward FDI into India remained buoyant at US$ 27.4 billion during April-December 2008 (US$ 20.0 billion in AprilDecember 2007), reflecting the relative attraction of India as an investment destination.
US$ 31.7 bn during 2008-09
Foreign Investment : Rules
2005 Press Note 2 FDI relaxed
2001 Press Note 4 FDI in twonships 100 acre
10 ha. And 50k sq.ft. BU came in as new norms
FDI in Township of 100 acres allowed with three year lock in.
2000 Press Note 2 FDI by NRIs in Real Estate
FDI allowed for NRIs and relaxation of Norms
Foreign Investment : Rules
MINIMUM AREA TO BE DEVELOPED
? Serviced housing plots: Min.10 hectares/ 25 acres area ? Construction-development projects: Min built-up area of 50,000 sq mts ? Combination project: Any one of above two conditions
INVESTMENT CONDITIONS
? Min. capitalization: 1) WOS- US$ 10 million and 2) JV with Indian partner: US$ 5 million ? Funds to be brought in within 6 months of commencement of business ? Original investment cannot be repatriated before a period of 3 years from completion of minimum capitalization Investor may be permitted to exit earlier with prior Government approval
Foreign Investment : Rules
OTHER CONDITIONS
? At least 50% of project must be developed within of 5 years from date of obtaining all statutory clearances ? Investor not permitted to sell undeveloped plots** ? Project to conform to norms & standards laid down by respective State authorities ? Investor responsible for obtaining all necessary approvals as prescribed under applicable rules/bye-Iaws/regulations of the State ? Concerned Authority to monitor compliance of prescribed conditions by developer
Foreign Investment : Rules
Foreign Investment : Rules
? Investments by NRIs under FDI Route not subject to Press
Note 2 restrictions investment
? Investments through a foreign company not treated as NRI ? Under FDI regime, NRIs can invest in development of services
plots, development of townships, city and urban level infrastructure facilities, manufacture of building materials, housing financial institutions, etc through an Indian entity properties in India
? Under NRI regime, NRIs can also directly invest in immovable
FDI : People
Bankers Realty Funds
Consultants
Direct Networking International Players
Growth Drivers
Growth Drivers
Growth Drivers
THANK YOU
doc_508086586.ppt