Real estate safe as houses for FDI law.asia
Foreign Direct Investment (FDI) is a significant driver of economic growth and a substantial contributor towards the expenditure fuelling the nation’s developmental ambitions. The real estate industry is a cornerstone of the economy, is the second-largest source of employment after agriculture and has a multiplier effect on 270 related sectors. Forecasts for growth are expecting it to reach USD1 trillion by 2030. As the industry transforms, it has seen a substantial surge in foreign investment.
Under the current policy, certain sectors are prohibited from receiving FDI, either through the automatic or the government approved routes. The real estate business is one such sector. A real estate business includes any entity that is engaged or proposes to engage in real estate business, construction of farmhouses and trading in transferable development rights. FDI is not permitted in such entities.
