Real Estate In India

Real Estate in India

by

Jajati Patro

According to the Department of Industrial Policy and Promotion (DIPP), FDI flows into housing and real estate in India in April 2009-January 2010 stood at US$ 2649 million. FDI flows into housing and real estate in April 2000-January 2010 stood at US$ 8161.31 million.

According to a latest industry body report, foreign direct investment (FDI) in real estate in India will increase to US$ 25 billion in the next 10 years, from present US$ 4 billion on the back of increasing recognition as an infrastructure service driving the economic growth engine of the country.

Recently, a discussion draft of the Real Estate (Regulation of Development) Act, referred as the

Real Estate

Bill, was released by the Union Ministry of Housing and Urban Poverty Alleviation. The objective of the Real Estate Bill is to establish a Regulatory Authority and an Appellate Tribunal to regulate, control and promote planned and healthy development and construction.

Reserve Bank of India recently revised the norms for urban cooperative banks (UCBs) for giving loans to the housing and

real estate sector

. According to RBI, working capital loans to small contractors against hypothecation of construction material are exempted from the existing norms that allow UCBs to use 15 per cent of the total deposits for giving loans for housing and commercial real estate in India.

The Reserve Bank has reworked the rule for aggregate limit for housing finance, which allows urban banks to use up to 15 per cent of deposits to provide housing, real estate and CRE loans.

Furthermore, real estate companies will benefit from the demand for residential and office space in Tier-II and Tier-III cities and have planned various projects in 2010-11. DLF, the largest realty firm serving the real estate sector, opines that economic growth is faster in the smaller cities and hence will create more demand for real estate.

Additionally, Ansal Properties is also executing ongoing residential projects in Jaipur, Jodhpur, Agra, Ajmer, Kundli and Panipat, among other cities enhancing the

Real Estate

development in the country . In 2010-11, the company is planning to launch a million sq ft area in a commercial project in Lucknow for office buildings and a shopping mall.

Also, real estate major DLF, has announced that Caraf Builders & Constructions has raised its stake in DLF Assets (DAL) to 91 per cent. Caraf is involved in the acquisition and development of real estate properties in India. The company holds four rent-yielding properties in Gurgaon, Kolkata and Chandigarh. DAL is a co-developer for four IT/ITES Special Economic Zones (SEZs) based in Gurgaon, Chennai and Hyderabad.

Jajati Patro

is a well-known Journalist, who collects and interprets data on the web for the global E-seva. These days he is working on

Real Estate

,

Properties and Real Estate

Article Source:

ArticleRich.com