A spate of landmark reforms undertaken by the government including RERA, GST, Liberal FDI Norms, has given a much needed momentum to the fund flows to debt- ridden, cash- starved real estate developers.
These reforms have particularly boosted the confidence of global investors and institutional investors who are now more keen to invest in real estate. This is evident from real estate gaining $257 million of FDI in 2017. The reforms have also bridged the trust deficit of property buyers, with 12 percent hike in home sales in quarter ending March.
It is not just the investments in physical real estate but also in real estate shares that have picked up in recent past. It’s in this backdrop that developers are now taking to equity market to raise funding. Lodha Group has filed IPO papers to raise over 5000 crore from market. Shriram Properties is also planning a 1000 crore IPO.