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Shares of real estate companies are trading higher by up to 6% on BSE after the government has relaxed the norms for allowing foreign direct investment (FDI) in the construction development sector. The move will boost affordable housing projects and smart cities across the country.
Share of real estate developers like Sobha Developers, DLF, Unitech, Housing Development and Infrastructure (HDIL), D B Realty, Puravankara Projects and Indiabulls Real Estate are up 2-6% on BSE.
The S&P BSE Realty index, the largest gainer among sectoral indices, was up 2.7% compared to a marginal 0.05% rise in the benchmark S&P BSE Sensex at 0935 hours.
At a Cabinet meeting chaired by Prime Minister Narendra Modi on Wednesday, the minimum built-up area required to attract FDI was reduced from 50,000 sq m to 20,000 sq m, while the capital requirement was decreased from $10 million to $5 million, a Business Standard report suggests.
The proposal was moved by the Department of Industrial Policy & Promotion, under the commerce ministry, to attract more foreign investment in the construction and real estate sectors.
Share of real estate developers like Sobha Developers, DLF, Unitech, Housing Development and Infrastructure (HDIL), D B Realty, Puravankara Projects and Indiabulls Real Estate are up 2-6% on BSE.
The S&P BSE Realty index, the largest gainer among sectoral indices, was up 2.7% compared to a marginal 0.05% rise in the benchmark S&P BSE Sensex at 0935 hours.
At a Cabinet meeting chaired by Prime Minister Narendra Modi on Wednesday, the minimum built-up area required to attract FDI was reduced from 50,000 sq m to 20,000 sq m, while the capital requirement was decreased from $10 million to $5 million, a Business Standard report suggests.
The proposal was moved by the Department of Industrial Policy & Promotion, under the commerce ministry, to attract more foreign investment in the construction and real estate sectors.
