Builders seek support from banks, HFCs for development of affordable housing

Affordable Housing
Affordable Housing

NEW DELHI: Realtors’ body CREDAI on Tuesday said the banks and housing finance companies need to support builders in the development of affordable housing projects as margins are low in this segment.

The interest in affordable housing has increased after this segment has been given the infrastructure status in the Budget, CREDAI-NCR President Manoj Gaur said.

“With increased interest in affordable housing, the sector needs more support from banks and housing finance companies to achieve the 2022 vision of ‘housing for all’. Due to low margins, we need special facilities from partners to fund construction,” Gaur said here at the CREDAI’s conclave.

He said the developers would be completely compliant with the definition of affordable housing when planning projects.

Property consultant CBRE released a white-paper and gave a positive outlook to the real estate industry saying that the impact of an unprecedented measure like demonetisation had only a short-term impact. It noted that the industry was moving towards increased transparency and governance reforms.

The white-paper also said that the sector was likely to witness the inflow of more formal sources of capital, with institutional capital likely to be infused into the sector in the longer term.

Reff- http://realty.economictimes.indiatimes.com/news/industry/builders-seek-support-from-banks-hfcs-for-development-of-affordable-housing/57528078

Walls N Roof Comment: Affordable housing is the mission of government of India and it has made many positive announcements to achieve the mission of housing for all by 2022. In the recent budget announced affordable housing segment was given the status of infrastructure which resulted into attracting the premier developers of India like Tata Housing pvt. Ltd, Sunteck Realty, Shapoorji Pallonji group etc. The government of India has also announced many policies and reforms such as RERA, GST, interest rate subsidy, stamp duty removal etc so that the end users and investors invest in affordable housing. This segment of affordable housing is growing at a faster rate and requires the support of banks and finance companies. The segment of affordable housing has boosted the realty sector of India.

Leave a Reply