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This new rule will also give a boost to the 100 smart cities being planned by the government. Home buyers will also cheer the relaxation as fresh inflows raise the possibility of projects that are stuck getting completed and cheaper housing becoming available going ahead.

Government Relaxes FDI norms for Real Estate Sector and Construction Sector. This new rule will also give a boost to the 100 smart cities being planned by the government.

The news is true. Foreign Direct Investment (FDI) norms in the construction industry in India are likely to be relaxed by the government of India. The current real estate market is highly facing liquidity crunch for which the government is looking to boost up the flow of investments in the sector. The current FDI policy demands a lock-in period of three years for the investments made in India by foreign players. The three-year time is applicable right from the date of receipt or from the date of completion of minimum capitalization, whichever is later. But the draft policy proposes to relax this lock-in period for FDIs.