Foreign investors’ growing interest in India’s thriving real estate and housing market can be estimated from the fact that foreign direct investment (FDI) in the sector climbed 80 times in the last five years.
Compiled figures suggest that FDI in the Indian real estate and housing market jumped from mere Rs 171 crore in 2005 to settle at Rs 13,586 crore in 2009-10. The figure inflated further with a foreign direct investment of Rs 737 crore in April and May this year.
The largest chunk of FDI was pumped in the real estate projects Mumbai, the country’s commercial capital. Out of the total 1,614 projects in which FDI was pumped since 2005, Mumbai accounted for 422. The largest FDI between 2005 and 2010 remained in the construction of a technology park at Mumbai’s Bandra Kurla Complex, which attracted $372 million through a Mauritius-based foreign collaborator.
Delhi also enjoyed significant attention of foreigners with 316 projects backed by FDI. Among other cities, Bangalore, Hyderabad and Chennai attracted foreigners to inject money in 225, 105 and 68 real estate projects between 2005 and 2010.
But, that doesn’t imply that FDI remained limited only to metropolitan and big cities. Foreigners also made considerable investments in smaller cities such as Jaipur, Bhopal, Kanpur, Panaji and Kochi.
The Foreign Exchange Management (FEMA) rules out foreign investment in real estate and construction of farm houses. But, the definition of real estate business by FEMA does not include construction of townships, residential or commercial projects, roads or bridges, regional level infrastructure, educational institutions and recreational facilities.
Foreign collaborators who invested in India’s real estate and housing market belonged to as many as thirty-four countries including Saudi Arabia, Netherlands, Sudan and the United States, but the largest number of foreign collaborators was based in Mauritius.
Compiled figures suggest that FDI in the Indian real estate and housing market jumped from mere Rs 171 crore in 2005 to settle at Rs 13,586 crore in 2009-10. The figure inflated further with a foreign direct investment of Rs 737 crore in April and May this year.
The largest chunk of FDI was pumped in the real estate projects Mumbai, the country’s commercial capital. Out of the total 1,614 projects in which FDI was pumped since 2005, Mumbai accounted for 422. The largest FDI between 2005 and 2010 remained in the construction of a technology park at Mumbai’s Bandra Kurla Complex, which attracted $372 million through a Mauritius-based foreign collaborator.
Delhi also enjoyed significant attention of foreigners with 316 projects backed by FDI. Among other cities, Bangalore, Hyderabad and Chennai attracted foreigners to inject money in 225, 105 and 68 real estate projects between 2005 and 2010.
But, that doesn’t imply that FDI remained limited only to metropolitan and big cities. Foreigners also made considerable investments in smaller cities such as Jaipur, Bhopal, Kanpur, Panaji and Kochi.
The Foreign Exchange Management (FEMA) rules out foreign investment in real estate and construction of farm houses. But, the definition of real estate business by FEMA does not include construction of townships, residential or commercial projects, roads or bridges, regional level infrastructure, educational institutions and recreational facilities.
Foreign collaborators who invested in India’s real estate and housing market belonged to as many as thirty-four countries including Saudi Arabia, Netherlands, Sudan and the United States, but the largest number of foreign collaborators was based in Mauritius.
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