Gaur City 2 14th AvenueA white paper had been recently released by the CREDAI (Confederation of Real Estate Developers’ Associations of India) and CBRE jointly, making it clear the end of short-term demonetization effect on real estate. The industry has already started recovering and is moving towards transparency in transactions.

This white paper also stated that the sector is expected to witness the inflow of more methodical sources of capital with the likeliness of introduction of institutional capital also.

Giving the infrastructure status to the affordable homes is very significant decision, but the problems related to funding and loans kept the minds of experts and developers occupied.

This is an additional support  for affordable homes indicates the rising need of the banks and finance companies’ support for the sector in order to make the “Housing for All” by 2022 concept a successful.  As it is already based on low margins, special facilities will, certainly, be required from the partners to fund the construction.

While urban area needs 20 million housing units, rural area also needs nearly 40 million housing units. Government is seeking participation from the sector since the approach of increasing floor space index is not the only way out to meet the demands. A scenario where developers build projects that are difficult to absorb for the market’s capacity are not favourable projects for affordable homes. This incurs high costs, ultimately leading to large projects which are difficult to maintain. To solve this issue, location specific demand should be found out by a consolidated national database.

Talking about the  funding for affordable homes, many decisions  have stirred the real estate sector causing expectations to rise. Lending for land is not provided by infra and scheduled banksbut they can give overheads and funds for construction. Corporate ratings acting as the basis, cheaper capital is being provided to the developers.