Fund to Incomplete Housing Projects : National Housing Bank Asks Banks and HFCs


The regulator for HFCs (housing finance companies), National Housing Bank (NHB), has advised lenders across India to fund partially finished housing projects that are viable. But are stuck because of want of funds or / high house prices.

Reduce Prices.!

In an advisory, the NHB has asked banks and HFCs to reassess these projects and, if required, ask developers to reduce prices so that housing demand is revived and unsold inventory reduced.

R.V .Verma, Chairman, NHB said, "We want to ensure that whatever capital is locked up because of these stalled projects is released & people get their houses"

Last November (2012) month, finance minister Mr. P. Chidambaram had asked heads of PSU banks to help builders / promoters revive growth in the housing sector. The minister had also asked banks earlier to put pressure on real estate developers to bring down home prices.

According to property research company Liases Foras, an average of  22 months of inventory remains unsold across the top 6 cities in India.

The pile-up stands at 39 months in the MMR (Mumbai Metropolitan Region) and 28 months in the Delhi NCR (National Capital Region)
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