MOS Finance addressing on Housing Finance issues at NAREDCO Convention

Urbanisation should happen without slums being created: Santosh Kumar Gangwar

· Realtors seek government’s support for project completion demand creation of a support fund.

· Demand for equity is healthy but investors cautious due to uncertainty in the environment

· Govt. assures full support in dealing the problems facing the sector

New Delhi, 29 August 2017- The government feels that urbanisation of the country should not lead to the proliferation of slums in the country and the real estate sector should help in checking this phenomenon. Speaking at the 14th National convention of NAREDCO Mr. Santosh Kumar Gangwar, Minister of State (Finance), Govt. Of India said “Real estate developers will play an important role in realising our government’s vision of housing for all by 2022. This will also mean mass urbanisation but this should happen without the proliferation of slums and real estate developers and NAREDCO can play an important role in it. ”

The premier body of realtors in the country NAREDCO agrees with the government. It feels that the government and private sector both need to support the sector. The Convention which is being attended by prominent realtors and other stakeholders gave an opportunity to the developers to put across the problems and issues facing the sector. Participating developers also felt that the government should support the sector in its testing times. Mr. Naveen Raheja, CMD, Raheja Developers said” More than 250 industries depend on real estate sector. Economy can move forward and PM’s vison of housing for all could be realised. But for that to happen we need government’s support. Government should help and set up a fund for project completion for projects that are stuck up.”

Developers felt that creation of such fund will help the realtors and home buyers alike and the projects facing problems could be led to completion with its help.
Realtors also felt that the sector has healthy appetite for equity but the investors are in wait and watch mode at the moment. Uncertainty in the environment and recent developments like GST implementation and RERA have only added to the woes of the developers. According to realtors the flow of equity has not stopped but investors are wary and are approving things on a case to case basis.

Developers felt that a change in mind set towards the sector is needed for resolution of the problems it is facing. With government’s support they felt that good times for the sector are round the corner.