The Special Window approved by the Union Cabinet to augment funds for stressed real estate projects would speed up the completion of a large number of such housing projects and is a good beginning, though the sector needs much more liquidity, real estate developers and analysts said.
“It is a very good decision. It will benefit many more projects, including stalled projects in Noida and NCR, which are stuck in NCLT proceedings. So, this is a big positive,” said Niranjan Hiranandani, managing director, Hiranandani Group, and national president NAREDCO.
“The fund will help nearly 1,600 stalled housing projects in the country, and it is positive that the aspect of NCLT/ NPA will not be a stumbling block to prevent stalled and delayed projects from approaching the fund,” he added.
‘More money needed’
“The real estate sector needs much more money, but a beginning has been made with this decision,” he said. Shriram Properties Ltd. CMD Murali M. said, “It is a very big step and can be transformative. It will have multiplier effect and is a major step for the revival of the sector. With this, four or five dozen builders will come back to the market which is good for the sector. This ₹25,000 crore can be a catalyst to generate ₹1,00,000 crore for the sector.”
“It is a positive step. There are many genuine developers who are solvent, yet facing liquidity challenge due to various reasons [such] as poor sales and buyers preferring ready-to-move-in apartments. This funding will enable such developers to complete their projects through this last-mile funding,” said Ashok Mohanani, chairman, Ekta World & VP, NAREDCO Maharashtra.
“Besides revival of the sector, this decision will lead to increase in demand for steel and cement. This will provide impetus to generate more employment,” said Manju Yagnik, vice-chairperson, Nahar Group & VP, NAREDCO Maharashtra.
“This is a critically important move which eliminates the ambiguity that surrounded the timelines for setting up the fund, and its actual implementation. Finally, countless aggrieved homebuyers will see the light at the end of the tunnel,” said Anuj Puri, Chairman, Anarock Property Consultants.
Mr. Puri said, “Also, the special window will get investments from institutions like LIC, SBI and others, which will take the corpus to nearly ₹25,000 crore.”
Shishir Bajaj, CMD, Knight Frank India, said, “This step will definitely create greater confidence and credibility and may, in due course, encourage private segments to extend their support in last-mile funding, helping the beleaguered sector to go over this period of slowdown.” Anshuman Magazine, chairman & CEO, India, South East Asia, Middle East, Africa at CBRE, said 4.58 lakh units in 1,600 projects stand to benefit.