The government of
India wants to make very easy and simple for foreign property investors and in particular
for them to put their capital into the ventures that relate to the tourism and hospitality
sector. It is carefully to seek at changing the rules and regulations to allow
overseas investors to be part of smaller real estate ventures. At present
times, they are limited to invest in the housing projects that cover a minimum
of 25 acres.
It is expected
that it will encourage foreign investment in various sectors of property
developments in some places like Delhi, Bangalore, Chennai, Mumbai and
Hyderabad where it is normally not possible to find 25 acres of land for rapid
development. The department of Industrial policy & promotion, which sets
out the rules and regulations as well as guidelines for direct foreign is very
keen to attract countless investors from diverse parts of the city.
It is proposing to waive minimum capitalization for rapid development ventures, which have commercial, hospitality and tourism such as restaurants, hotels and entertainment facilities for property buyers as well as investors.
The waiver would also be available, if
505 of the built up area in a residential project is devoted to hotel and
tourism businesses such as resorts, food courts and restaurants and if 205 of
the total built up area is used for hotel rooms. The rapid movement as a relief
as a time where real estate sector is struggling with high levels of debts, severe
lending conditions and a normal slowdown in trade.
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