Stress fund a need to reverse real estate Slowdown: Dr Niranjan Hiranandani NAREDCO

by Kanika M. News Reporter

The economic slowdown that is impacting India’s real estate sector and industry stakeholders also directed that the slowdown situation will be expected to remain for another half of the year. The experts and tycoons of real estate have downgraded the current period outlook for nex six months to remain the dark period of real estate indicating lesser improvement to the level of on-ground activities for the sector. Whereas organizations like Knight Frank-FICCI-NAREDCO also indicated the slowdown on real estate sector. Whereas the economic slowdown in a country not only effecting the domestic industries but also effecting the real estate sector by factors that affect real estate like NBFC crises, bankruptcies etc.

Honrable finance minister Nirmala Sitharaman on Sunday met real estate developers and discussed ways to create demand in the country's real estate market. The main purpose of this meeting is to roll out a host of measures, including sectoral incentives and confidence-building steps for the private sector, to stimulate the economy that is grinding through losses, layoffs and an investment freeze. Many investors who took the risk of completing infrastructure projects are facing difficulties in way to divest them and earn a good return due to the poor sentiment in the equity markets and in the banking sector. Center Government is working on measures including tax cuts, sops for specific sectors to boost the real estate market

Although real estate Developers suggested the creation a stress fund for completion of stalled projects. The proposal was also being forwarded by home buyers in a separate meeting with the Finance Minister during the day. It is also being said by real estate experts like Dr Niranjan Hiranandani NAREDCO president explained that the issue of ways to use stress funds for financing stalled projects was discussed in the meeting. Also the meeting also took measure to promote rental housing in the country. Also it is being discussed in the meeting the objective should be to complete all pending or stalled real estate projects pan-India within a span of five years by providing for such stress fund incessantly for next five years," the letter said.