These cities have most number of stalled homes; check how FM Sitharaman’s new fund may help

By: |
Updated: Nov 07, 2019 4:52 PM

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.

housing sector, housing industryThe finance minister also said that the government will act as the sponsor of the fund and infuse up to Rs 10,000 crore.

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.”

Also read: Did you know what made demonetisation worse? Modi govt could not explain it properly

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.

Watch: Sitharaman on economic reforms: ‘Missed the bus last time but we won’t miss the bus now’

“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.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1COVID-19 puts focus back on personal vehicles, pushes out shared mobility: Motherson Sumi chairman
2More Chinese apps to be banned soon
3Vocal For Local: AnnaMaya Artisan Awards recognise local artisans