22 Aug, 2010, 05.58AM IST, Kartikeya,TNN
MUMBAI: It’s not Indians alone who are monitoring the real estate market here. Foreign direct investment (FDI) in India’s booming real estate and housing market jumped 80 times between 2005 and 2010.
Figures obtained by TOI show that in 2005, FDI in real estate was a mere Rs 171 crore. That soared to Rs 13,586 crore in 2009-10. In April and May this year, Rs 737 crore in FDI was pumped into the sector.
Technically speaking, the Foreign Exchange Management Act or FEMA, prohibits foreign investment in real estate and construction of farm houses. However, the definition of ‘‘real estate business does not include development of townships, construction of residential or commercial premises, roads or bridges, educational institutions, recreational facilities, city and regional level infrastructure’’.
More and more money is being pumped into India’s housing sector from abroad. And this, despite the recent downturn. Since 2005, foreign direct investment (FDI) worth Rs 37,986 crore has come into the housing sector in India, including Rs 13,586 crores already this year. Read more