New Delhi : Real estate players hailed the government’s decision to relax FDI rules in construction sector, saying it would help cash-starved developers raise significant amount of foreign funds and also complete the stuck projects.
“Praise to the Finance Minister for being so prompt in meeting the requirements of this industry in his budget announcement, then approval for Real Estate Investment Trusts (REITs) and now relaxation in FDI norm. There will be huge amount of FDI inflow in this sector after this easing of norms,” realty major DLF’s Executive Director Rajeev Talwar said. Welcoming the decision, realtors’ apex body CREDAI President C Shekar Reddy said it would help developers get an extra route of funding their projects. “The easier FDI rules will help faster completion of projects delayed by a squeeze on funds due to elevated debt levels,” JLL India Chairman and Country head Anuj Puri said.
“The announcement literally comes in the nick of time for Indian real estate. The sector’s share in the total FDI has slipped from 5 per cent in the previous year to under 3 per cent as of the current fiscal until August. In fact, its share has been consistently falling over the last six years since 2009-10, when it stood at over 20%,” Puri said.