Real Estate companies might experience some liberty and relaxation till where foreign capital is concerned.

FDI, Foreign Direct Investment, might help real estate firms in raising the foreign money. It has been found through some sources that an ease in capitalization requirement is expected from the government for the realty companies which are eying at raising money in the form of external commercial borrowings.

But, this relaxation is not for all the realty firms. Rather, it is just for companies executing projects identified in the districts covered by Jawaharlal Nehru National Urban renewal mission.

This proposal was brought up in a meeting called by the finance ministry for stringent monitoring by the housing and urban development ministries. This meeting was held in order to ensure that rules laid by FDI are strictly followed in the sector.

As far as FDI in real estate is concerned, realty suffers from lack of clarity says some of the industry insiders.

This relaxation actually has an aim of incentivizing realty companies for coming up with projects in tier 2 and 3 cities.

On the other hand, realty is in dilemma that what would be the response of finance ministry on this proposal since it strictly opposed to any relaxation to the realty sector.

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