FDI restrictions removed in construction & real estate sector in India
All restrictions removed for FDI in construction & real estate sector other than 3 year lock-in for some cases. There will be no lock-in for FDI in SEZs, resorts, hotels, old age homes, educational institutions and NRI investments.
Each phase of construction would be considered like a seperate project for FDI, which would enable a foreign investor to exit and repatriate even before entire project is complete, and the investor can also exit if project is completed before the lock-in period ends.
Restrictions on minimum capitalization and size have been removed allowing for smooth FDI flow into construction for any size of project and in any amount.
Earlier the minimum capitalization was $ 5million and minimum size was 20,000 sq meters.
FDI will not be allowed in trading of TDRs, farmhouse construction, dealing in immovable property or land.