Following the Indian government’s recent relaxation of FDI norms in the res estate segment allowing foreign investments, Indian builders welcomed the move describing it as encouraging gesture for new investors from across the world.
Raheja Developers said it has made changes in their several existing business policies just to ensure the benefit of investors. "There is a requirement of 11 crore houses that need to be built by 2022 to achieve Housing for all mission, with most of it required for EWS/LIG households," said the company in a statement.
FDI has gone up by 40% in real estate with an eye on Global Institutions to make India their destination. IMF has branded India as the brightest spot in the Global Economy whereas the World Bank projects India”s growth at 7.5%.
CMD of Raheja Developers Navin M Raheja , who is also the Chairman Advisory Council NAREDCO and Chairman Real estate council FICCI, said: “I appreciate the government’s act and I am thankful to the government for the new policies, these policies will boost the confidence of investors and developers."
With the new relaxtion of the foreign direct investment (FDI) norm in construction sector, there is no minimum restriction of 20,000 sqm for FDI as also the minimum investment of $5mn in real estate.
It means any project regardless of size which is under construction can have access to FDI and the new move can boost "the investment environment and brings in more foreign investments in the country. This move will boost investment in the affordable housing segment," said Navin Raheja.