[INDIA REAL ESTATE NEWS] Good morning, everyone. Here I have important INDIA REAL ESTATE news to share with you which is as mentioned under.|
BENGALURU: The recent financial aid by the central government to boost the real estate sector is expected to provide relief to mere 2.5 lakh units across top 7 cities in the top 7 cities alone.
The FInance ministry recently announced the setting-up of a special window of Rs 10,000 crore for last-mile funding of distressed affordable and mid-segment homes. Approximately the same amount of funds will be added by outside investors such as LIC, etc. However, this comes with a caveat - the projects should not be non-performing assets or pending under NCLT, and must be at least 60% complete.
“While this move is commendable, the government need to change its definition of ‘affordable’ housing. As it stands today, the government labels a metro-based home as affordable in metros if it admeasures 60 sq. mt. or less in carpet area and is priced within INR 45 lakhs. This price tag is far too low in cities such as Delhi-NCR and Mumbai. Moreover, the price definition of mid-segment homes is also not clear,” said Anuj Puri, Chairman - ANAROCK Property Consultants.
According to Anarock research, a total of 4 lakh units are stuck in various stages of non-completion across budget segments that don’t fall under NCLT; all units launched during 2013 or before. Of this, nearly 63% (or 2.5 lakh units approx.) are within affordable & mid segments (sub INR 80 lakh budget) across top 7 cities.
As per the study, Mumbai followed by Pune will be the biggest beneficiaries of the aid. While 92,350 delayed units in MMR could get new lease of life, in Pune 67,240 units will be impacted. In Bangalore, Hyderabad and Chennai, merely 9% of the total units can avail of the government’s benefit when it is implemented. While in Delhi, 60,700 units in NCR can get revived.
The report mentions that there are a total of 5.76 units (launched in 2013 or before) across budget segments that are stuck in various stages of non-completion in the top 7 cities alone. These also include units falling under NPAs or NCLT. Even if we consider those that are eligible for government funding (approx. 4 lakh units), within these there are at least 1.5 lakh units that are priced Rs 80 lakh budget and hence will not qualify under the said caveats.” Homebuyers stuck within such units will continue their wait for light at the end of the tunnel,” said Puri.
However, the recent financial booster may not impact new demand significantly - but will give relief to aggrieved homebuyers who had been waiting anxiously for their homes before the start of the festive season. That said, it will go a considerable way in improving overall buyer sentiments and will also help fix the supply side in the residential segment.
Total 4 lakh units are stuck in various stages of non-completion across budget segments that don’t fall under NCLT; all units launched during 2013 or before
Of this, nearly 63% (or 2.5 lakh units approx.) are within affordable & mid segments (sub INR 80 lakh budget) across top 7 cities
Long wait to continue for 37% or approx. 1.5 lakh premium homes
Approx. 92,350 delayed units in MMR could get new lease of life, followed by 67,240 units in Pune
Even excluding projects under NCLT, at least 60,700 units in NCR can get revived
These numbers will shrink down a little as projects under NPAs not included
Read more at: https://economictimes.indiatimes.com/wealth/real-estate/govts-fund-will-help-complete-up-to-2-5-lakh-housing-units-in-7-major-cities/articleshow/71166056.cms
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