AIF Fund: A positive move for Real Estate Sector

The recent announcement by Finance Minister of Rs 25000 crore funds infusion in the Real Estate sector to revive stalled housing projects is a welcome move for realty developers and homebuyers. The fund will see an infusion of Rs 10,000 crore from the government and the rest from public sector entities, State Bank of India (SBI) and Life Insurance Corporation of India (LIC).

Talking about Housing in Demand- The earlier requirement of a project not being categorised as NPA or not admitted to the NCLT has now been removed which will help projects that are stalled in the last phase of completion. It will give the much-needed fillip to real estate, especially affordable housing, which was facing a crunch in funds. The benefits will include availability of housing units worth Rs 2 crore per house in Mumbai, Rs 1.5 crore in Delhi NCR, Ahmedabad, Pune, other metros, and Rs 1 crore in other parts of the country.

Mr. Pradeep Aggarwal, Chairman – ASSOCHAM National Council on Real Estate, Housing and Urban Development, Founder and Chairman – Signature Global India Pvt. Ltd. said, “Announcement calls for celebration as now the buyers will get the property which they were waiting for. We hope that announcement will be followed by steps required to ensure that other institutions should come up with their share of Rs 15,000 crore. Stuck projects were affecting the sale of projects even by other developers and this was leading to an unsettling situation. Now, everything is going in the right direction and the coming year will be a game changer for the real estate market.”

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