FDI Policy Relaxation under Consideration

The Ministry of Commerce and Industry is considering relaxation in the foreign direct investment (FDI) policy for the real estate sector, including 100 percent FDI in completed RERA registered projects with over 100 apartments. According to market experts, this - to allow FDI for completed apartments with occupancy certificates - has been a long-standing demand. The consideration by the government for further relaxation comes in the midst of the coronavirus crisis, lack of business and the resultant liquidity crisis. This will allow real estate players to monetise their completed projects so that focus could be diverted to complete pending housing projects that are struck largely due to shortage of funds.