Even as the government announced fresh measures to revive the realty sector, a total of 1.74 lakh homes are completely stalled in the top seven cities alone, a study said.
Even as the government announced fresh measures to revive the realty sector, a total of 1.74 lakh homes are completely stalled in the top seven cities alone, a study said. These are such realty projects where no construction activity is happening since 2013, ANANROCK Property Consultants said in its study. In addition, nearly 66 per cent of these stalled units have already been purchased by the buyers across the country. On Wednesday, the union cabinet approved the establishment of a ‘special window’ to provide priority debt financing for the completion of stalled housing projects in the affordable and middle-income housing sector.
Taking stock of the matter, Anuj Puri, Chairman, ANAROCK Property Consultants said, “This move couldn’t have come at a better time because the delay was causing serious apprehensions. The delay in the on-ground deployment of the stress fund gave rise to severe apprehensions about the main issues – that of stuck and delayed projects – that had remained unaddressed so far. The timeline for setting up this fund and its actual implementation is quite critical.”
The finance minister also said that the government will act as the sponsor of the fund and infuse up to Rs 10,000 crore. The fund will provide relief to developers with unfinished projects and also ensure the delivery of homes. Adding, she said that a total of 4.58 lakh housing units are stuck and around 1600 projects are stalled.
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“Our estimate is that 250-300 projects can see completion due to this fund. It is important money comes back into circulation in the real estate sector,” Sharad Mittal, Chief Executive, Motilal Oswal Real Estate, told CNBC TV-18.