The new economic measures unveiled by the Finance Minister, Nirmala Sitharaman – a combination of fiscal, liquidity and administrative measures , is set to perk up lending , in turn giving a much needed boost to real estate sector, particularly housing as thousands of home buyers across the country, mainly in Delhi-NCR, facing uncertainty as their dream homes have been delayed.
These measures include an infusion of Rs 70,000 crore into banks to boost their liquidity capacity of banks by Rs 5 lakh crore and on the other hand housing finance companies would get upto Rs 30,000 crore with a view to give boost in the real estate sector. This move has come in the backdrop of the budget encouraging PSBs to buy high quality pooled assets of NBFCs up to one trillion with government providing a one-time 6 month partial credit guarantee for the first loss of up to 10%. The government has also opened co-origination route for PSBs and NBFCs for lending.
Mr. Pradeep Aggarwal, Chairman – ASSOCHAM National Council on Real Estate, Housing and Urban Development, Founder and Chairman – Signature Global India Pvt. Ltd. said, “This is a major boost provided by the government which is very timely and productive, especially keeping in view the impending festive season. These measures will boost credit flow to many developers as now they will be able to complete their projects on time which were delayed and hence results in much needed push to realty, especially kick-starting the recovery of residential real estate”.