Guidelines for FDI application in Indian real estate
The Government of India has set up certain guidelines for investors willing to apply in FDI in real estate, which have conditions like area, investment options and target for completion of a project.

1) Minimum area

In case of development of serviced housing plots, 10 hectares (25 acres)

In case of construction-development projects, built-up area of 50,000 sq m.

In case of a combination project, any of the above two conditions

2) Investment

Minimum capitalization

for wholly owned subsidiaries - US$ 10 million

for JV with Indian partners - US$ 5 million–, to be brought in within 6 months of commencement of business

Original investment cannot be repatriated before a period of three years from completion of capitalization.

The investor may exit earlier with prior approval from Foreign Investment Promotion Board (FIPB).

3) Time frame & rules

At least 50 per cent of the project to be developed within five years from the date of obtaining all statutory clearances.

Investor cannot sell undeveloped plots - where roads, water supply, street lighting, drainage, sewerage and other conveniences are not available.