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Our Bureau

Mumbai , Sept. 22

The Centre will consider allowing foreign investors to tap the capital market pre-IPO in the real estate sector, the Union Urban Development Minister, Mr S. Jaipal Reddy, said here on Thursday. "We are absolutely open to foreign investment in urban sector... .India needs foreign investments to grow," he said, inaugurating a two-day conference on real-estate organised by the Federation of Indian Chambers of Commerce and Industry.

State Governments need to scrap restrictive laws like the Urban Land Ceiling Act and the Rent Control Act, he said, further advocating the lowering of stamp duties to at least five per cent.

Dr Seek Ngee Huat, President with the Government of Singapore Investment Corporation (GIC) Real Estate Pte Ltd, said that there would be a surge in cross-border real-estate investment activities globally where-in the share of emerging markets would grow.

"Most real estate institutional investors are now looking to increase their exposure in Asia, more so in emerging markets of China, south east Asia and India because of the benefits of global diversification," said Dr Seek.

He, however, cautioned the global investor on practical difficulties involving foreign investment regulations, market transparency, local market practices related to leasing terms, land titles, building standards, lack of suitable stock for investment, tax and currency issues relating to enforceability of laws and contracts, repatriation of profits and changes in tax policies.

More Stories on : Outlook | Real Estate & Construction | Foreign Direct Investment

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