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