Over $4 billion belonging to various global realty funds is ready to enter the Indian real estate sector on the back of $1 billion which has already come in, according to Bobby Parikh, managing partner, BMR & Associates.
Interest in India is mainly due to the sector transforming from a highly-fragmented business, dominated by regional private entrepreneurs and archaic laws, to a transparent and accessible global business, he told a workshop on taxation and regulation for real estate.
Parikh felt the "recent changes in rules on foreign investment through preference shares and the debenture route and, more importantly, the changes in ECB guidelines now preventing the use of foreign debt in the real estate sector, have had a significant impact on the flow of foreign funds into the real estate sector."