Last year, in March 2005, India announced liberalised
guidelines allowing FDI (Foreign Direct Investment)
up to 100 per cent in townships, housing, built-up
infrastructure and construction-development projects-
including but not restricted to – housing, commercial
premises, hotels, resorts, hospitals, educational
institutions, recreational facilities, city and regional
level infrastructure.
For the past 3-4 years, the demand for commercial,
housing and rental housing, has grown up about 30%.
Gurgaon, a satellite city of Delhi has increased 40
to 50 per cent in property prices for the past one
and half years. Real
estate in India has huge potential demand in commercial,
residential, retail, industrial, hospitality, healthcare
etc.
NRIs are encouraged to invest in real estate such
as :
- Residential construction plots development
- Cmmercial business centres and offices
- Townships development
- bridges and roads construction
In 2005, investors have done maximum investment in
three cities- New Delhi, Mumbai and Bangalore of India
NRIs must note that there are some restrictions
such as:
- For housing plots development - minium 25 acres
- For construction and development projects, built-up
area of 50,000 sq m.
NRI combination project, Minimum capitalisation
- Wholly owned subsidiaries- US $10 million
- JV with Indian partners- US $5 million, must buy
within 6 months of commencement of business
- Repatriated of Original investment is allowed
after three years
