Vineet Relia
Managing Director
SARE Homes

The government has eased foreign direct investment norms for the construction development sector. This is a positive move from the Modi government which will, no doubt, pave the way for more such progressive policies and will boost the real estate sector.

India has eased foreign direct investment rules for the construction sector which will improve the overall investor sentiment and increase the inflow of investment. The reduction of the minimum built-up area to 20,000 sq. metres will give builders more space to operate, especially in urban locations where there is a problem of land shortage as well as high cost of land.

Moreover, the exemption of the projects which commit 30 per cent of their total cost to affordable housing is a measure which will give a big thrust to the affordable and mid-income segments.

These measures will also support the developers to pursue housing projects which will be the backbone of the government’s ‘Smart City’ dream. I am confident the sector will now start moving on a fast-growth trajectory.”

Source: SARE Homes

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