Foreign investors are less interested in Indian realty market
External commercial borrowing (ECB) is encouraged in the budget 2012 for the affordable housing projects.
However according to analysts the foreign investors will not be interested to invest in the affordable housing projects due to the low profit margin.
Also the cost of Indian rupees is volatile, it will be difficult for individual builders to repay the foreign debts with low profit from affordable housing projects.
As per the budget the ECB will be routed through national housing banks, which will make the borrowing process easier for individual small builders.
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Sources : Business Standard
Affordable housing projects, Budget 2012, External commercial borrowing (ECB), foreign debts, Foreign investors, individual builders, national housing banks
Since India’s 2012-2013 Budget to Strengthen Investment Environment, there is a wide scope of Indian investors to invest outside India. We are providing the investors a platform to invest their money outside India in Real Estate.
Very informative news. But we have all this while heard about Indian real estate booming with the NRI’s investment.