• Non-resident Indian investments allowed under all categories.

• Direct FDI allowed in residential townships of more than 25 acres and in construction with approval for projects offering built-up area of more than 50 thousand square meters.

• Direct and automatic approval for IT park and hotel investments.

• Foreign and domestic venture capital investment in real estate allowed with prior approval.

• Within special economic zones, akin to foreign trade zones in the USA, developments, free capital and dividends allowed with many specific tax exemptions on profits (5 to 10 years), and local taxes.

• Foreign investors are allowed to invest in Greenfield / Brownfield developments.

Regulatory Developments • As per a policy initiative of the Securities and Exchange Board of India (SEBI), Indian venture capital firms are now allowed to invest in real estate companies and projects.

• The Cabinet Committee of Economic Affairs of India has allowed 100% Foreign Direct Investment (FDI) in the construction sector under the automatic route.

• Foreign investors can now invest in commercial real estate developments projects with a minimum built area of 50,000 sq. meters.

• The minimum area threshold for Foreign Direct Investment in Integrated Township projects has now been reduced to 25 acres from 100 acres. A number of projects that were previously stalled for non availability of such contiguous land parcels in major cities are now expected to come on line.

• Foreign investors are still barred from acquiring and trading in undeveloped land. This regulatory restriction has been imposed primarily to stem the flow of speculative capital that may negatively impact the stability in land markets. The SEBI has also recently approved the guidelines for real estate mutual funds, allowing them to invest directly in real estate properties in India.