This article explores the opportunities and possible risks associated with investment in Indian Residential real estate. An integral part of the Indian economy, Indian Residential Real Estate involves the purchase, sale, and development of residential properties.

What are the new sources of capital for land acquisition?

The sources of capital supply for the Indian real estate sector have witnessed new transitions recently. In the past, banks provided the majority of the capital needed for developers to purchase land.

Key Regulatory Measures affecting the Real Estate Industry:-

1. The insolvency law — A legal framework that governs the financial distress of individuals and entities, providing mechanisms for debt restructuring and orderly resolution when they are unable to meet their financial obligations.

2. Outlawing Evergreening of Projects — By prohibiting the practice of “Evergreening,” which basically included extending loan terms in order to delay repayments, the RBI strengthened its hold even further.

3. Real Estate Regulation and Development Act — RERA establishes a set of rules aimed at guaranteeing project completion, financial transparency, safeguarding home buyers’ interests, and other objectives.

Read more information in detail for Exploring India’s Residential Real Estate Investment Options