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US 250
Million Fund for Indian Real Estate Sept 7, 2005
Real Estate
funds-What's in it for you? Aug 2, 2005
HDFC launches Real Estate Fund -
Target 750 Crores May 23, 2005
Foreign funds, companies troop in
for India's realty pie April 11, 2005
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FDI flow in Real Estate - A check
Think local-act global is the way forward. Relaxed FDI norms in the real
estate sector are encouraging, creating bullishness in the market. Not to be
ignored are the on-the-ground local issues including high stamp duties,
Urban Land Ceiling and Regulation Act and lack of clarity in land titles.
Though primarily satisfied with FDI guidelines
announced earlier this year, FDI in retail and ease of buying and selling a
property for non-Indian players are issues still to be addressed.
The current norms restrict foreign firms
from selling undeveloped land, a move Government feels would help avoid
speculation.
Primarily, the high stamp duties are the
culprit. Discouraging clean transactions. Ranging between 6 to 12% (West
Bengal) while the global average of three to four per cent.
Lengthy approval processes. Around 30
sanctions, with no time bound clearance. Electriciy, water, pollution and
now water harvesting. Not from a single agency, mind you but, rather from
multiple agencies.
Then the Urban Land Ceiling Act. Even though
the steps are positive, instances of some States including Andhra Pradesh,
West Bengal, and Kerala are yet to repeal the Urban Land Ceiling and
Regulation Act are still a heavy weight on the FDI sentiment.
Finding land with clear titles is a difficult task. Manual title checks,
obscure data, are few challenges in this sector.
Easy way for many is to approach the state governments to do a partnership
deals. This of course limits options of prime land as prime lands in most of
places is with individuals.
by Sheikh Pervez Hameed 26/7/05
See -
Delhi Rent Control Act Stalled |
