Real Estate (Regulation and Development) Bill passed by both the Houses of Parliament is likely to facilitate more foreign direct investments in the sector, developers say.
According to news agency IANS, one aspect which prevented more foreign investment from coming to the Indian real estate sector was its opaqueness.
Foreign direct investment (FDI) equity inflows in construction development dip by a staggering 84 percent during the first nine months of the current fiscal, as compared to the same period in 2015.
Anuj Puri, chairman and country head of global real estate services firm JLL India said from Kolkata,"The bill will facilitate in injecting FDI into the Indian real estate. It essentially works towards strengthening transparency, information in the public domain, accountability and responsibility for developers."
He added that bill also provides comprehensive consumer protection which was not there earlier.
According to latest data by Department of Industrial Policy and Promotion (DIPP), during the first nine months of the current fiscal, India attracted only Rs.673 crore of FDI in construction development, including townships, housing and built-up infrastructure. The sector, however, attracted Rs.4,264 crore of FDI inflows in the same period of 2014-15.
"The bill will help boost the overall image of Indian real estate as an attractive investment avenue from all over, including foreign investors," industry chamber FICCI'S president Harshavardhan Neotia said.
Neotia also added that legislation aimed to do away with improper business practices of the unorganised real estate sector, and bring builders within the ambit of regulations pertaining to timely delivery of projects.
Bill, which was pending before Parliament since 2013, was passed by the Lok Sabha on Tuesday.
It was cleared in Rajya Sabha on March 10.