CII meet to focus on real estate FDI

A two-day Confederation of Indian Industry conference on 'emerging trends in the real estate sector in South India', to start from December 8, will deliberate on the Centre allowing 100 per cent foreign direct investment in real estate in the country.

FDI investments in real estate would make available further funds for investing in this sector, which has seen heavy demand, fuelled by the IT and ITES sector, CII conference Chairman and Managing Director Prestige Estates Projects Ltd Ifran Razack told reporters in Chennai.

With sectors like IT and ITES growing phenomenally, the sector had absorbed 25 million square feet in South India in 2006.

"The requirements are bound to grow more, which also means more jobs created and more purchasing power among the people",

he said.

The conference also assumes significance because the move is now to develop Tier II and Tier III cities so that there is 'a level playing field' in these cities.

"The issue is larger cities have become over developed and congested. We need to decongest. We must provide opportunities to smaller cities. We have to create an environment so that businesses will go there", Razack said.

Other important topics to figure at the conference would be the 'archiac' rent control acts, the rate of taxes and the need for transparency in transactions, strong regulatory framework and enforcement, he added.

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