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The Centre’s decision to allow 100 per cent foreign direct investment (FDI) in real estate brokerages would not have any material impact, said experts.
Most property brokerage were owned by international firms and domestic ones were too small to get investments from abroad, they said.
“Unless domestic brokers want some international partners, it (the government notification) will not impact much,” said Shishir Baijal, country head at Knight Frank.
Wednesday’s circular said: “It has been decided to clarify that real estate broking service does not amount to real estate business and is, therefore, eligible for 100 per cent FDI under the automatic route.”
Amit Bhagat, chief executive at ASK Property Investment Advisors, said: “It (real estate brokerages) is a service industry and big brokerages are already in that space. So today’s decision will not have any significant impact on investments or job creation.”
Jones Lang LaSalle, CBRE, Cushman & Wakefield, Colliers (US based) and UK-based Knight Frank are the major international property consultants in India.