| Over $4 billion belonging to various global realty funds is ready to enter the Indian real estate sector on the back of $1 billion which has already come in, according to Bobby Parikh, managing partner, BMR & Associates.
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| Interest in India is mainly due to the sector transforming from a highly-fragmented business, dominated by regional private entrepreneurs and archaic laws, to a transparent and accessible global business, he told a workshop on taxation and regulation for real estate.
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| Parikh felt the “recent changes in rules on foreign investment through preference shares and the debenture route and, more importantly, the changes in ECB guidelines now preventing the use of foreign debt in the real estate sector, have had a significant impact on the flow of foreign funds into the real estate sector.”
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| Global funds are expected to flow even more if there is stabilisation in SEZ laws, introduction of Real Estate Investment Trusts (REITs), allowing venture funds to invest in real estate and making the provisions of Press Note 2 applicable to the real estate sector.
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| Beena Mukesh Chotai, CFO, ICICI Ventures, said “the country can attract more quality funds if there is clarity and relaxation of FDI norms, implementation of a structure for tax pass through, lower stamp duty and case based exemptions, greater transparency and accountability among developers, and standard valuation norms in the country.” |
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