According to an economic survey, the FDI in construction sector fell down to 59% in the last fiscal year despite relaxation in norms. The real estate sector is facing a setback now due to the fall in the housing sales, new launches, delay in project execution and the increase of debt of the developers. The FDI in real estate in 100% subject to certain regulations. But, despite the same, the investment in real sector has plunged down. What are the issues affecting the growth of investments in real estate? The answer is approval of permits, high land registration costs and stamp duties, which are not removed despite GST, rising debt level and NPAs, lack of skilled labour force and manpower, delay in delivery of houses by the Developers and Builders. Does this mean that this is the end to the road for FDIs? The answer is no. Now the Government has woken up from its deep slumber and has taken stock of the existing mal practices in the realty sector and has introduced plethora of legislations and has brought about variety of initiatives in the Housing Sector such as Housing for All, Affordable Housing, Smart – City Project, Housing Challenge, encouragement of REITs and introduction of legislations such as RERA and Benami Transactions Prohibition Act. Therefore, the FDI in construction sector may be expected to rise in the future provided there is a regulatory framework and that the same is strictly adhered to.
FDI in construction sector slows down
31 Saturday Dec 2016
Posted REAL ESTATE NEWS AND UPDATES
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