FDI in Real Estate Industry: The Impacts

Indian real estate has been dealing with the problem of cash crunch from past many months. This toughened situation for developers might ease with the central government’s new decision to ease the FDI in crisis-struck real estate sector. Property experts share an opinion that this move by the government will lead to rise in property prices which is good news for homebuyers ready to invest right now.


FDI easing will enable easy flow of money at cheaper interest rates. The developers who have got some respite from the recent festive season can easily get another booster doze with easing of FDI. As of now, fund raising is the top priority of developers in the country. FDI will help them with infusion of required capital and thus help realty industry to gain a momentum once again.

Many realty developers believe this move by central government as a major structural reform which was much needed. As per experts, with relaxation in area, exit norms and minimum capitalization, an increased amount of foreign capital will be able to enter Indian real estate sector.

As a matter of fact this capital will mainly help in giving a rejuvenated breath of life for residential projects in India. In the long run, future homebuyers may get to see the results of this move in the form of lowered property prices. Also, those who invest right now are sure to get huge return on investment with existing properties. The actual impact of FDI in realty sector can only be seen after completion of a year or so.

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