Real estate is as safe as houses for FDI

Foreign Direct Investment (FDI) is a major driver of economic growth and a significant contributor to the expenditure that fuels the country’s development goals. The real estate industry is a cornerstone of the economy, employing the second-largest number of people after agriculture and having a multiplier effect on 270 other sectors. Forecasts for growth predict that it will reach USD 1 trillion by 2030. 

Foreign investment has increased significantly as the industry transforms. Certain sectors are currently barred from receiving foreign direct investment via automatic or government-approved channels. The real estate industry is one such sector. A real estate business is any entity that engages or intends to engage in real estate business, farmhouse construction, or trading in transferable development rights. FDI is not permitted in such organizations. 

However, the real estate business excludes the development of townships, building homes and commercial buildings, roads, bridges, and real estate investment trusts (REITs) governed by the Securities and Exchange Board of India (Real Estate Investment Trusts) Regulations 2014. FDI is thus not permitted in businesses that deal in land or immovable property solely for profit.

However, township development, construction of residential and commercial buildings, roads and bridges, educational institutions, hospitals, resorts, hotels, recreational facilities, city and regional-level infrastructure, townships, real estate broking services, and the earning of rent or income on leases of property that do not amount to transfer are not considered real estate business, and FDI is not prohibited. 

Where permitted, FDI is permitted up to 100% via the automatic route. Non-residents can invest in equity shares through compulsory and mandatory convertible debentures through FDI. Foreign direct investment (FDI) can be made in an Indian company’s fully compulsory and mandatory convertible preference shares via the automatic route, which requires no government approval. However, depending on the investment vehicle and industry in which the Indian company operates, both investors and the company may be required to report under the Foreign Exchange Management Act of 1999. They must also follow all relevant laws, regulations, and rules. 

FDI in construction development projects by automatic means is subject to certain conditions. A foreign investor may withdraw and repatriate their investment before the completion of a project or after the development of critical infrastructure such as roads, water supply, street lighting, drainage, and sewerage (trunk infrastructure), provided that a three-year lock-in period has expired. This lock-in does not apply to specific projects such as hotels, tourist resorts, hospitals, special economic zones, educational institutions, old-age homes, and non-resident Indian investments. All projects must adhere to applicable regulations, including land use requirements and community amenities, as laid out by the appropriate agency. The Indian company must obtain all necessary approvals from the relevant authorities and can only sell developed plots with pre-existing trunk infrastructure. 

According to the Department for Promotion of Industry and Internal Trade, real estate-related activities attracted USD 4.026 billion in foreign direct investment from April to December 2023. USD 185 million came from building townships, housing, infrastructure, and other construction projects. Real estate activities attracted USD 60.07 billion in FDI from April 2000 to December 2023, accounting for 9% of total FDI. FDI in the real estate sector has increased due to policy easing, significant growth in the property technology sector, strong demand for high-quality office space, and the emergence of alternative investment vehicles such as REITs.

The real estate market has grown significantly over time. The ever-increasing urban population has driven up demand for residential and commercial development. International investors have contributed capital and implemented global best practices. These have raised the quality of planning, construction, and design. There is a strong and resilient real estate market that attracts both domestic and international investors. It continues to draw domestic and international investors due to its strength and resilience. 

Mumbai real estate developers anticipate that Gudi Padwa will boost home sales

Maharashtra real estate developers believe that April 9th’s Gudi Padwa festival will boost sales of new homes. Many companies provide discounts and attractive incentives, such as gold coins, flexible payment plans, and even exemptions from goods and services tax and stamp duty, to entice customers to provide more information.  

Gudi Paadwa, which falls on the same dates as Kerala’s Vishu, Andhra Pradesh’s Yugadi, Punjab’s Baisakhi, and Tamil Nadu’s Puthandu, is celebrated as a time of renewal. Real estate experts say that during this time, there is a noticeable increase in activity in the property market because many Indians associate purchasing a property with auspicious dates.  

“As average property prices rise in the top seven cities, where housing demand is still very high, this is unquestionably the right time to buy. Santosh Kumar, vice  chairman of ANAROCK Group, stated, “Big and leading developers are seeing significant  sales in their projects, so one should not look for major offers and discounts.” 

According to him, comparable patterns were seen during the holiday quarter (October-December 2023), when developers hardly offered any deals or discounts, especially for projects with strong sales. Offers, such as freebies like gold coins and iPhones, are being made to initiatives requiring an extra push to boost sales. 

During this fortunate event last year, “we  achieved 20 bookings, accounting for approximately 25% of our monthly business.” Strong buyer sentiment in the real estate market typically presents an excellent opportunity for consumers to buy homes, according to Anupam Varma, CEO of Rustomjee Urbania at Rustomjee Group. 

Gudi Padwa provides.

Mahindra Lifespace Developers’ Chief Business Officer (Residential), Vimalendra Singh, stated that during this period, developers provided flexible payment options, festive discounts, and other incentives like gold, silver, or even white goods. The company sold over 20 homes in five days on Gudi Padwa last year, an almost 100% increase in sales. 

Demand for real estate has increased dramatically in the first two months of 2024, particularly in the MMR region, where property registrations surpassed 10,000 in January and 11,000 in February.  “We anticipate that Gudi Padwa will contribute to an increase in housing sales volume,” Ashar Group Chairman and Managing Director Ajay Ashar stated. On this occasion, the company has arranged its yearly Ashar Expo. 

Majnu Yagnik, Senior President of NAREDCO-Maharashtra and Vice Chairperson of the Nahar Group, stated that a variety of incentives are available, including cashback programs, waivers of registration and stamp duty fees, personalized payment plans, family vacation packages, free gold coins, appliances, or furniture, and deferred interest payments until full possession. 

This Gudi Padwa, we expect strong sales traction. Sales this year are predicted to rise by 15-25%, making it a remarkable year overall. Parth Mehta, CMD of Paradigm Realty, stated, “We are offering 10gm gold coin plus 0% SDR along with a spot discount upon booking a flat at our 71 Midtown and Paradigm Alaya project.” 

The Person Midtown Bay project, situated in the center of Mahim, offers semi-furnished 2.5 BHK and 3 BHK apartments on higher floors with a modular kitchen fully equipped with white goods. 

For its 2BHK homes in the Tridhaatu Morya development in Chembur, Tridhaatu Realty is giving away IKEA gift cards. GST and stamp duty exemptions are also provided. 

In Pune, Joyville Shapoorji Housing offers 10 gm gold coins at Joyville Sensorium and 50K worth of gold vouchers at Joyville Celestia. To entice fence-sitters, Joyville Virar is providing a multi-coupon offer with benefits of up to 2 lakh. 

Shevgaon: After illegal PMSes take root in a peaceful Maharashtra tehsil, the real estate market declines, and suicide rates rise.

To invest with these unregistered entities, which have been offering astronomical returns, people have been moving from safer options and even taking out loans.  

Her history has been mainly quiet. Shevagaon lies in the Ahmednagar district of central Maharashtra. Renowned for its cotton commerce and sugarcane cultivation, the Thesil gained notoriety in the 1970s due to flooding caused by the overflow of the Jayakwadi Dam and recently due to an uncommon altercation among the residents in 2023. 

Shevgaon faces a new challenge from the sub-brokers running illegal portfolio management services (PMS) and promising people the stars.

Money is moving toward safer options like bank deposits and away from more conventional investments like real estate.

Financial advisor Hitesh Oberoi, based in Shevgaon and Ahmednagar, told Moneycontrol that “most people I know have withdrawn their fixed deposits and are dabbling in the equity markets for better returns.”  

More concerningly, individuals borrow money to invest with these illegal PMSs by taking out loans against gold and real estate. What is worse about this is that these arrangements are causing severe financial losses, thuggery, and suicides.  

Who owns these illicit businesses? 

Twenty-five-year-old Sai Kawade is one of the dream sellers. With a bold marketing campaign for Asitech Portfolio Management Services, he promises returns of 7 percent or 84 percent annually. Asitech is not a registered PMS and is thus an illegal service. 

In contrast, the top-performing legally registered PMSs in the country generated 50% returns over the previous year. People flock to unregistered entities because of the substantial difference in returns promised; they are often unaware that these are illegal establishments. 

We will update this article with Kawade’s response. 

Kawade presents himself on Facebook as an authorized person at Zrodha, but on Instagram, he appears as an Angel One sub-broker. As stated, Kawade is neither an authorized person nor a sub-broker; instead, Angel One and Zerodha informed Moneycontrol that he is unrelated to their brokerages. 

Unlike other PMS service providers in Shevgaon, Kawade does not transfer the client’s securities into his account. Instead, he asks clients to provide him with their login information, including their username and password and states that he will trade them through the client’s account. 

According to Kawade’s posts, he advises his clients to open accounts with Zerodha because he says he can avoid two-factor authentication with this brokerage’s account. 

Brokers must enable two-factor authentication (2FA), which entails a one-time password and a PIN/Password, before granting a client access to a trading or demat account. Software that gets around this for a Zerodha account, according to Kawade, is available.

According to Zeodha, who told Moneycontrol that there is no way to bypass 2FA on its platform, this is untrue. 

Phantasy luck 

Kawade uses standard techniques to promote his sell puts and call strategy, writing extensively about it on social media and sharing his trading account’s profit and loss (P&L) statements.  

Moneycontrol has written a great deal about how simple it is to create these P&L statements with easily accessible apps. Because statements can appear as though they came from respectable brokerage houses, it is simple to convince investors of them. 

Illegal PMSs typically fall short of expectations. These PMS managers take the capital of another client, promise returns for a few months, and then disappear with the majority of the client’s capital. 

This section of the story has a darker twist in Shevgaon. People have been hiring goons to get their money back from these PMS sub-brokers. 

According to news reports, the PMS managers are killing themselves because they can not return their client’s money, and they fear retaliation. 

Inhumane tactics 

A broker in Shevgaon reportedly ingested poison after investors demanded their invested capital and the promised return, according to a report published in Pudhari, a regional language newspaper in Maharashtra. Embankment of millions of rupees was the charge brought against the individuals in charge of this operation.

According to market insiders, investors are resorting to these drastic measures due to the use of leveraged capital.  

The market watchdog has issued directives prohibiting unlawful PMSs. Through the Sebi Complaints Redress System (SCORES), investors can voice their complaints against registered entities, including the brokerages that have hired these sub-brokers. Additionally, they can file a complaint via registered mail or email to the relevant Sebi department regarding unregistered, illegal PMSs. 

Investors who file complaints with the regulator may also include screenshots of their correspondence with these companies, including call recordings and WhatsApp conversations.  

All you need to know about the sale deed

What are the steps in the process of buying a property?

Let’s first discuss the steps in buying a property. When purchasing a property, the first step is negotiating the price with the seller. To confirm the booking, you must pay an advance to the seller. A builder must first pay a 10% deposit and sign a booking form before purchasing a property. After the buyer and seller agree on terms, they sign a contract that includes a time period for payment (generally two to three months). But this is not a sale deed. It’s important to note the information, facts and details in a sale deed and here’s everything you need to know.

A sale is completed when the seller transfers ownership rights to the buyer. The deed of sale is drawn up and registered with a specific state authority, making it valid.

How is a Sale Deed Executed? – RoofandFloor Blog

What is Sale deed?

The deed of sale is a legal and final document transferring ownership of a property. It describes the terms of the sale and is signed by both the buyer and the seller. Depending on its purpose, a contract of sale may also be called a contract of sale or a contract of sale mortgage. A bill of sale is governed by the common law, the Contracts Act, the Transfer of Property Act, etc. It uses certain terms that are standard across all jurisdictions, but certain details relate more specifically to the Indian context such as consideration (usually the same as the amount paid).

Benefits of Sale deed:

  1. Protects Parties – A well drafted deed protects both the buyer and the seller by preventing ambiguity and minimizing legal risks.
  2. Defines The Area – Buyers find it helpful to specify the square footage and locations of properties on paper.
  3. A sale deed is a legal document that concludes a sale. It is enforceable by law.

Clauses / Elements in the Sale deed you should know:

The sale deed includes the following details:

  1. Details of the party – The details of the party include the names, ages, and addresses for both buyers and sellers.
  2. Details of the property The location of the property, a description of the property, and construction details.
  3. Payment details – Payment details will show you the price of your property. It also lists the payment mode like a credit card (Visa, MasterCard, Discover) or direct transfer from a bank account.
  4. Handing over the original papers of the property and the possession details.
  5. No dues on the property – On the property, no dues, such as loans, tax, liability, and other dues.
  6. Indemnity clause –  An indemnity clause in a sale deed provides protection for the buyer’s interests. It is important to draft the document with care to avoid future disputes. Indemnity clauses under the sale deed seek compensation if there are any losses or expenses in the future.

What is the process for executing a Sale deed?

  1. Draft sale deed – To execute a sale deed, you need to first draft a sale deed. This document records all of the property owner’s rights, duties, and interests in the property. This includes encumbrances, liens, loans, taxes, mortgages and deeds for neighboring properties if they do not belong to the same legal entity.
  2. Pay Stamp Duty – Stamp duty is a tax paid to the Indian government on the sale of real estate. It is usually paid by the buyer and varies from state to state. For more details see our detailed video on stamp duty.
  3. Signed – Both buyer and seller must sign the sales deed. This document ensures that they have both agreed to the terms of the sale transaction. The deed must be registered within four months of the date it was signed in order to be valid.
  4. Registered – A sale deed serves as both proof of ownership and an essential legal document required for taxation purposes. It is an affidavit signed by both the seller and buyer. This is submitted to the revenue department when registering property under several tax laws. It must be registered within 4 months of signing the document. If this deadline is exceeded, you risk losing your right to purchase the property.
  5. The seller gives the original documents – The seller delivers the original documents and the buyer pays to execute the sale deed.

The following are the important, procedural, and legal terms you should know about sale deed if you are planning to sell your house.

Best tips to hire a broker in India

Real estate is one of the largest industries in India. There are several companies of real estate agents who work as intermediaries between buyers and sellers of property. Finding an agent for real estate can be a difficult task. There are so many qualities and attributes to look for that finding someone who has them all is impossible. However, there are some basic qualities and tips to hire a broker in India.

Designated Agency Duties & 4 Good Reasons for an Exclusive Buyer Brokerage  Agreement - Illinois REALTORS

Here’s what you should know before hiring a broker in India:

  1. Whenever we hire a broker for our real estate transaction, we must list our requirements clearly. For example, what type of property you want, locality, etc. As brokers don’t specialize in the entire area. So, they might show options that they’re selling. So, make it your job to be clear about what you want to purchase.
  2. If you are looking for a best real estate broker, choose a registered one. This will provide you with another level of trust and credibility. The Real Estate (Regulation and Development) Act, 2016 (RERA) requires real estate brokers to be registered with the state RERA authority.
  3. You should always ask about the latest pricing and gauge the broker’s market knowledge. Excelled brokers always know about their localities’ future developments and capital rates. They should have good interpersonal skills and find out how good they are at conversing with clients.
  4. You need to find out how many years they have been in the real estate business, their record on selling the property, the number of deals they cracked, what their credentials and qualifications are if they have experience, etc. Ask all brokers you are communicating with for details on previous clients and speak to the clients so that they can also give their reviews on that particular broker.
  5. Find an agent who will spend enough time with you until you find a property that suits your desires. A broker should understand the nuances and will advise you accordingly.
  6. Buyers need to find a broker who has good intentions and should be thinking about your benefit. 

Now you know how to choose a good broker, and this is the end of the best tips to hire a broker in India.

How to search brokers in India:

  1. You can also search online on platforms like
  2. Try to talk to at least two to four brokers before finalizing, and try to discuss all talked-about matters with expectations.
  3. Try to connect on call, see his office, and have a meeting with him for your trust.


Why Real Estate Investment in India is the Most Profitable Option?

A short look at the Real Estate Industry:

The word “Real” is the Latin root rex, which means “royal”. Earlier, kings used to own all the land in their kingdoms. Therefore, the most globally acknowledged sector all over the world is the real sector. If we know real estate in terms of business, it means the game of producing, buying, and selling property. According to the economic sector, the construction of industry ranks third among the 14 major sectors. The future of Indian real estate by 2040, the market will grow to Rs. 65,000 crores (US$ 9.30 billion) from Rs. 12,000 crores (US$ 1.72 billion) in 2019.

After the agriculture sector, the real estate sector is the second-highest employment generator in India. Also, this sector will sustain non-resident Indian (NRI) investment for the short and the long term. Bengaluru is the top city and is the most recommended property investment destination for NRIs, followed by Ahmedabad, Pune, Chennai, Goa, Delhi, and Dehradun. evaluates the future of Indian real estate by 2040.

The Market size of the future of the Indian Real Estate Industry by 2040:

This sector is about to reach US$ 1 trillion in market size by 2030, up from US$ 200 billion in 2021 in India. It contributes 13% to the country’s GDP (Gross Domestic Product) by 2025. India’s growing infrastructure is much needed to grow as retail, hospitality, and commercial real estate are also growing significantly. Within a year, India’s real estate sector saw over 1,700 acres of land deals in the top 7 cities. In the commercial real estate sector, foreign investment was at US$ 10.3 billion from 2017-21.

Indian firms are estimated to boost >Rs.3.5 trillion (US$ 48 billion), according to the report of ICRA (Investment Information and Credit Rating Agency of India Limited). It is through infrastructure and real estate investment trusts in 2022. The Savills India report said that the real estate demand for data centers is to increase by 15-18 MSF in the year 2025 whereas in 2021 around 40 MSF has been delivered in India. Now, it assumes that the country will have a 40% market share within 2-3 years whereas India is looking to deliver 46 MSF in 2022.


In India, a total of 55,907 new housing units were sold in the 8 micro markets between July 2021-September 2021, which means there is 59% growth year over year, whereas, in the third quarter of July-September 2021, new housing supply stood at ~65,211 units, an increase by 228% YoY across the top 8 cities when its compared with ~19,865 units which launched in the third quarter of 2020. The commercial space is to record increasing investments in 2021-22 when it comes to commercial space in Gurugram.

 According to the Economic Times Housing Finance Summit report:

Almost, 3 houses are raised per 1,000 people per year as compared to the construction rate of 5 houses per 1,000 people. The current shortage of housing in urban areas is said to be ~10 million units. Hence, 25 million units of housing are vital by 2030. This is to meet the growth in the country’s urban population.

Indian Real Estate Will Lose CapitaLand Projects

CapitaLand plans to exit the Indian real estate market. The Singaporean firm plans to exit some of its UK and Australia projects as well.

CapitaLand to skip real estate India

CapitaLand plans to skip real estate India.

Singapore-based real estate firm CapitaLand plans to quit real estate in India. Besides quitting from India, CapitaLand has plans to exit from UK and Australia as well. The real estate firm  also plans to reassess its investments in ASX listed Australand Property Group. Continue reading

Real Estate Investment Overseas: Spain Turns Hotter

Real estate investors are flocking to Spain which implemented a new residency scheme. The new residency scheme allows foreign real estate investors to buy residential properties worth millions.

Spain real estate market hopes to be the paradise for real estate investors

Spain real estate market aims to be another paradise for Indian real estate investors.

Real estate investors of India find the property market of Spain more attractive. With the implementation of new residency scheme, foreign real estate investors are permitted to buy residential properties worth about Rs.1,15,82,745 (€160,000).

Spanish government aims to attract foreign investment through their new policy. Indian real estate investors are targeted mainly. Their higher spending on real estate properties is widely known. Continue reading

Real Estate India to Boom As Construction Regains Pace

Real estate India expects to get rid of the sluggishness. The year 2012 was really a sluggish year for the real estate builders.

real estate construction regains pace in India

Real estate India regained pace of construction. It is said to boost real estate India.

Real estate India is expected of gaining a boost from the retail FDI policy. The increased demand for retail spaces prompts the real estate players to construct more commercial projects. This in fact leads to real estate boom in the country.

Commercial real estate prices have risen sharply in India, especially in its big cities. Yet quality retail spaces available for rent are minimal. Thus the real estate experts predict a boom in construction. This will be all the more boosted by the entry of foreign multi-brand retailers. Continue reading

Surging Prices Pulls Down Residential Sales

Unaffordability created by the surging prices inversely affected the residential sales. Most of the top cities are affected by fall in demand and residential sales.

Residential Sales Faces Trouble

Residential Sales Faces Trouble Mainly from Surging Prices

Real estate builders normally foster residential sales by granting discounts. This is not seen in the present real estate situation. The real estate builders seem not willing to lower the prices at any cost. They point to the increased cost of production. Continue reading

Private Equity Firms Ready to Quit Real Estate India

Private Equity Plans to Quit Real Estate India

Private equity (PE) firms were the top investors in the 2006-08 boom years of Real estate. But the recent situation shows that they look ways to exit. Though they aim to exit profitable returns hold them tight in the field. Fallout of negative returns from their real estate investments makes them rethink of their exit. Continue reading