Realty sector seeks relaxation in FDI, ECB norms
Realty sector, facing severe credit crunch due to higher interest rates that had forced the developers to scrap new launches, expects the Union Budget to relax the norms for repatriation of foreign direct investment (FDI) and external commercial borrowings (ECBs) for the sector.
"The real estate sector has witnessed rapid growth in the recent past. However, raising funds continues to be a big constraint for us. We expect some policy decision on FDI in real estate that will benefit the market greatly," Puranik Builders Managing Director Shailesh Puranik said.
The industry expect the March 16 Budget to relax norms for FDIs and ECBs, especially for township projects which will give developers source funds at a much reasonable cost.
Currently, it is not possible for foreign investors to repatriate real estate investment proceeds for three years, which is hampering investment flows, Jone Lang LaSalle Chairman and Country Head Anuj Puri said.
"Relaxing norms for repatriation of realty FDI is the need of the hour. The market environment needs to be rendered more investment-friendly," he said.
"The real estate sector has witnessed rapid growth in the recent past. However, raising funds continues to be a big constraint for us. We expect some policy decision on FDI in real estate that will benefit the market greatly," Puranik Builders Managing Director Shailesh Puranik said.
The industry expect the March 16 Budget to relax norms for FDIs and ECBs, especially for township projects which will give developers source funds at a much reasonable cost.
Currently, it is not possible for foreign investors to repatriate real estate investment proceeds for three years, which is hampering investment flows, Jone Lang LaSalle Chairman and Country Head Anuj Puri said.
"Relaxing norms for repatriation of realty FDI is the need of the hour. The market environment needs to be rendered more investment-friendly," he said.
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