November 11, 2019
Mint

Will govt’s rescue plan get you closer to your dream home?

The government’s proposed alternative investment fund (AIF), worth ₹25,000 crore, is expected to provide last-mile funding to stalled projects across the country. According to the government, there are about 1,600 stalled housing projects, consisting of about 458,000 units, across the country. The move may also revive buyers’ confidence in the real estate market. Last quarter’s real estate reports from several consultants revealed a significant drop in housing sales. Experts believe that once the proposed AIF starts disbursing funds, construction in stalled projects will resume, which will boost confidence. “Many viable real estate projects were stuck due to the liquidity crunch, lesser sales, customers not buying under-construction properties. This step will also lift sentiments and help builders get more and more prospective buyers,” said Pavan Gupta, CEO, Muthoot Housing Finance Company, a subsidiary of Muthoot Fincorp that primarily lends to affordable housing needs.


Link: https://www.livemint.com/money/personal-finance/will-govt-s-rescue-plan-get-you-closer-to-your-dream-home-11573387823102.html