India of today can be acknowledged as the one of the fastest growing economy in the world and in this current economic status, real estate has emerged as one of the most appealing investment areas for domestic as well as foreign investors.
And this high growth curve in the real estate sector owes some credit to a booming economy and liberalized Foreign Direct Investments (FDI) regime in the real estate sector (for Construction-Development).
Foreign direct investment (FDI) in India's real estate and housing market jumped 80 times between 2005 and 2010 from Rs 171 crore to Rs 13,586 crore.
FDI is permitted in Development of Townships, Housing, Built up infrastructure and Construction Development projects The Government of India now allows 100 per cent FDI in the construction-development business.
This liberalization act cleared the path for foreign investment to meet the demand into development of the commercial and residential real estate sectors. It has also encouraged several large financial firms and private equity funds to launch exclusive funds targeting the Indian real estate sector.
FDI permitted 100% under Automatic Route