What are the government regulations supporting commercial real estate in India?

Several government regulations and policies bolster commercial real estate in India, fostering transparency, investor confidence, and market efficiency:

• RERA (Real Estate Regulation and Development Act): Although more visible in residential projects, RERA fosters fair practices and timely project completions. By mandating escrow accounts and disclosure norms, it indirectly benefits commercial ventures under integrated or mixed-use developments.
• FDI (Foreign Direct Investment) Reforms: Liberalized FDI policies permit up to 100% foreign investment in construction and development of real estate projects. This influx of global capital fuels large-scale office parks and data center developments.
• SEZ (Special Economic Zones): Designed to promote exports and generate employment, SEZs offer tax holidays, duty exemptions, and single-window clearances—attracting IT-BPM companies to set up massive office campuses.
• Insolvency and Bankruptcy Code (IBC): Simplifies stressed asset resolution, reassuring lenders and investors about recovery processes if a developer defaults.
• Smart Cities Mission: By improving urban infrastructure and digital connectivity, this initiative indirectly aids commercial real estate, boosting project viability in selected cities.

Collectively, these regulations create an investor-friendly environment that enhances market stability and growth potential for India’s commercial real estate domain.