HUDCO May Go for Private Sector Housing Finance within a Year, Claims Its Chief at NAREDCO’s 16th NATIONAL CONVENTION 

New Delhi, February 3, 2024: Chairman of the Housing & Urban Development Corporation (HUDCO), Sanjay Kulshrestha, expressed optimism that, in view of the growing resurgence that the real estate sector is experiencing post-COVID crisis, the corporation is likely to consider financing real estate corporates in the private regime beginning next year.

Currently, the corporation does not undertake, as per its prevailing mandate, corporate financing in the private sector for the real estate and housing sector, and its activities are largely confined to the Government and Government-owned utilities.

Addressing NAREDCO’s 16th NATIONAL CONVENTION, “FOSTERING TRUST WITH TRANSPARENCY; PATHWAYS 2047,” Kulshrestha pointed out that the housing and real estate sector, including infrastructure, are accorded special preferences and treatment in the budget, particularly in 2023-24. This could be one of the reasons that the corporation might undertake financing real estate activities.

The Chairman indicated that the housing development corporation would make necessary consultations with the authorities concerned so that it becomes feasible for the corporation to be permitted to go in for private sector financing, given the scope and diverse opportunities that the housing and affordable housing sector provides.

Earlier, speaking on the occasion, Joint Secretary of Housing and Urban Affairs emphasized the issue of rental housing and affordable rental housing, making it a point that it could be a case study for NAREDCO and all its stakeholders to look into. It may be mentioned here that NAREDCO has been seeking the attention of the Government towards rental housing, particularly for that segment which cannot construct its own housing units and wants to live in apartments provided on lease at a rent that suits both parties.

The Joint Secretary was of the opinion that EMI payments for housing units should ideally stay at 30 percent of what is earned by the unit seeker for affordable housing because it is a sort of acceptable thumb rule all over the world. In this context, the case of rental housing and affordable rental housing becomes a case study for which NAREDCO is requested to look into.

President of NAREDCO, G Hari Babu, in his concluding remarks of the conference, pledged the support of his association to the Ministry of Housing and Urban Affairs and committed that it would always work in close partnership with its mentor for a win-win situation.

This spirit of Bhagidari would facilitate the achievement of the commitments made by the Government for the masses in the desired way, particularly for achieving Housing for All, pointed out Mr. Babu.

The 2-day convention, which came to an end on Saturday, witnessed the signing of Memoranda of Association with concerned stakeholders and various wings of Government and NAREDCO in multiple ways so that the desired objectives of the housing sector are achieved as intended.