Whether according to law, it is possible for foreigners to aquire immovable properties in India to build up a portfolio. Also, what are the possiblities to take part in the Indian realty market as a foreign investor?
Indian laws do not permit foreign nationals to purchase immovable property in India if they reside outside India. However, immovable property may be purchased by a foreign national residing outside India to carry on a business activity with the approval of the Reserve Bank, the country's central bank.
As for laws pertaining to FDI in real estate, up to 100% is allowed in townships, housing, built-up infrastructure and construction-development projects (which would include, but not be restricted to, housing, commercial premises, hotels, resorts, hospitals, educational institutions, recreational facilities, city and regional level infrastructure) covering a minimum built-up area of 50,000 sq.m.
The minimum capital of USD 10 million for wholly owned subsidiaries and USD 5 million for joint ventures is required to be brought in within 6 months of starting the business in India.
50% of the project would have to be developed within 5 years from the date of obtaining all statutory clearances. Sale of undeveloped plots is not permitted.
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