Union Budget Proposal For Foreign Builders (100% FDI) May Boost Real Estate Prices
By Sanjay Sharma, Section Gurgaon Real Estate Property
Posted on Thu Feb 24, 2005 at 07:11:02 PM EST
The housing and commercial construction was thrown open to foreign players on Thursday granting in-principle approval to 100 percent foreign investment on the automatic rule. Formal announcement is expected on Monday.
The scope of foreign investment in construction and housing has also been expanded to cover
- built-up infrastructure and
- construction-development projects, apart from
- integrated townships.
- MNC's are now free to build and run their own premises
- Realty prices will go up
- Steel and cement sector will boom
Also, the previous NDA government's stipulation of constructing at least 2,000 dwelling units for 10,000 people in each project has also been scrapped.
While the foreign company or the joint venture would be prohibited from selling undeveloped plots, the government has stipulated that at least 50% of the project should be completed within three years of getting possession of land.
