Government Initiatives to Boost up Indian Real Estate Sector

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real estate sector


Real Estate is seen as one of the most revenue generating sectors of any country. Its growth as well as downfall both affects the economy of the country. In India, which is a developing economy, the role that real estate plays is very vital. So, government keeps a proper track of the development in this sector. Every year, new policies and laws are made and implemented by the government in order to bring in growth in the real estate. All these policies ease the investors as well as buyers thereby boosting the real estate growth. Here, in this write up we will let you know about the recent initiatives taken by the government to bring in hike in the real estate sector.


The steps taken are: In order to give impetus to the growth of Real estate market, the government has taken several initiatives like:


  • Reserve Bank of India has come out with different concessional schemes. For increasing the growth graph of real estate sector, RBI has given banks the authority to plan out new schemes that will benefit this sector.
  • The ULCRA i.e. Urban Land Ceiling and Regulation Act has been repealed by various states thereby bringing in hike in the real estate sector.
  • Increased share of FDI: In single-brand retail outlets this share has been raised to 51% and in cash-and-carry, the share is 100%. In reality projects, 100% FDI is allowed but through automatic route.
  • Funds allocated by the government for Urban Development were increased to US$ 1.17 billion from US$ 660.3 million.
  • The minimum area that can be developed in terms of integrated townships has been reduced to 25 acres from 100 acres. This has greatly helped the developers in making more profits and thus augmenting the real estate growth.
  • Share for the Rajiv Awas Yojna has been increased from US$ 32.4 million to US$ 274 million.
  • After three years of investment, there will be full repatriation.
  • For joint ventures and wholly-owned subsidiaries, the minimum capital investment is US$ 5 million and US$ 10 million, respectively.
  • Increase in funds for Housing from US$ 183.4 million to US$ 215.8 million.
  • Granted a tax holiday on profits from initiates in the financial year 2007-2008
  • Investing on housing projects of unit type of 1000 to 1500 square feet will prove to be highly beneficial.

Steps that Ministry of Commerce and Industry has taken: It has speeded up the development of SEZs by making the procedure of getting the tax-free industrial enclaves notified easier thereby easing the developers.


Government churns out huge amount of profit of real estate sector so it ensures that the investment in it is done without many obstructions. Apart from the above mentioned initiatives, there are various others that the government of India has taken to boost the growth of real estate.

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