Impact of Foreign Direct Investment on Real Estate

Abstract

The Foreign Direct Investment means cross border investment made by a resident in one economy in an enterprise in another economy, with the objective of establishing a lasting interest in the investee economy. FDI is also described as ―investment into the business of a country by a company in another country‖. Mostly the investment is into production by either buying a company in the target country or by expanding operations of an existing business in that country‖. Such investments can take place for many reasons, including to take advantage of cheaper wages, special investment privileges (e.g. tax exemptions) offered by the country. There is clearly an intense global competition for FDI. India has emerged as the second most attractive destination for FDI after China and ahead of the US, Russia and Brazil. Foreign investment can also result in the transfer of soft skills through training and job creation, the availability of more advanced technology for the domestic market and access to research and development resources.UNCTAD (United Nations Conference on Trade and Development) has a database which gives the complete FDI flow around the world.