Modi's measures help debt-laden property firms

Singapore

INDIA'S biggest overhaul of rules for foreign investment in real estate since the industry began opening up a decade ago has come just in time for cash-strapped builders facing borrowing costs exceeding 20 per cent.

Prime Minister Narendra Modi scrapped approvals needed for overseas ownership of some projects and removed barriers to foreign direct investment (FDI) in construction among a slew of measures unveiled on Nov 10 to boost confidence in Asia's third-largest economy.

The move allows developers easier access to capital in a country where research firm Liases Foras estimates more than half of the projects currently being marketed are delayed.

Leverage among builders has more than tripled since 2008, according to Mumbai-based brokerage IIFL Ltd, and borrowing costs soared as falling home sales made banks reluctan…