Haven for Safe Investment

Haven for Safe Investment

Real estate India market, being heaven for safe investment, has attracted the F11s. making a bee line to reap the benefits of the realty boom. In this context Ministry of Finance wants to slap FDI Rules on pre-IPO F11 investments in property in India as all pre-IPO private placements in the specific sector should be treated as FDI and comply with the FDI norms/ regulations detailed as under :-

A. The pre-IPO F11 investment be locked in for a period of three years.

B. Minimum investment of $ 5 m for joint venture and $ 10 m for 100% units.

C. Minimum land are 10 hectares.

D. Minimum built-up area 50,000 sq.m.

E. 50% of the project must be developed within 5 years.

F. Sale of undeveloped land prohibited.

Commonwealth Horizon is drawing nearer day by day, since hosting of Commonwealth Game. The Govt. is considering creation of land banks and allotment of land on long – term lease. Change in land use is also being examined in some cases. Hotels will be built at railway stations, bus depots and near airports. Government is speeding up the process of setting up over 100 hotels, ranging from three to five star, likely to be constructed in Ghaziabad , Gurgaon, Faridabad, Noida, Sonepat , Kundli , Manesar and Jaipur, Besides hotets, Delhi Metro rail link to the IGI airport may be built before Commonwealth Games , coupled with completion of first phase of the dilhi airport modernization by 2009 so that the same could be used during games period and all these things is booming the investment in property in India.

While all elements relating to development of infrastructure play a pivotal role , there is greater need to focus on road and railways.

Check on Bee Line for Foreign Institutional Investors in Real Estate:

Courtesy E.T.