Government Measures To Revive The Realty Sector |
Posted: January 17, 2020 |
The real estate industry finally witnessing the revival with the help of government measures and the funds of financial organizations to ease the distress projects. The fund of 25000crores provided by the government to complete the stalled projects of residential units which was delayed for so many years. The Supreme Court has given the deadline of 90 days to complete the projects at Noida-based developer Jaypee Infratech Ltd for giving the relaxation to the buyers of 20000 units which is not constructed yet. There are two ways to revive the sector where a large number of projects are stalled. The first one is to provide alternative investment funds (AIFs) by the government by which 60% of projects will be completed as stated by the largest non-banking lender Keki Mistry, vice-chairman chief executive of HDFC Ltd. The second way to encourage the banks if the NBFCs and housing companies provide funds to the stalled projects by not referring them as non-performing loans. No projects will be provided funds if they are in the list of NPL or else the projects will remain incomplete he added. The scarcity of funds to complete the projects and slowdown the rates sales which decrease the payments of customers because after the issue of delay in the projects the homebuyers are not willing to buy the under-construction projects due to uncertain risks occurrence. Residential Flats In Kolkata are known for its best dimensions and prices and buyers can surely believe in the upcoming residential projects in Kolkata as they are from reputed companies where no delay of possession is entertained. The analysts and the developers said that the revival of 1600 projects is at a positive starting point. If any projects which are considered as non-performing assets and also in national company law tribunal (NCLT) can also have the opportunity and scope to be included under this scheme of the government. The government is aiming at low-income projects mainly which are in the category of 45lakhs or below. By including the projects of the largest property markets, Mumbai and NCR where the home prices are of 1.5-2crores which will serve the beneficial returns. The home minister has discussed these situations previously with the several sections of the industry since the Budget. But these measures of funding will be the best solutions for the possible revival of the sector but rationalizing the GST and promotion of rental housing will also add on the extra incentives as explained by Rajeev Talwar, CEO, DLF. The analysts stated that it will be a game-changer for the projects included under NPA and NCLT which was unaddressed during the announcement done by the finance minister. It is a big opportunity for the residential units when it as fighting with the loggerheads of economic slowdown and the series of reforms. This measure will also enhance the buyers’ interest and also accelerate the diversity of sales with a growing demand as explained by Samantak Das, chief economist and head research and REIS at property advisory JLL. The government has taken the right decision for the real estate where it will be an interesting scene to understand the specifications of investment tenure, cost of funds to the developers, security packages, etc.
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