FM Throws Lifelines to Real Estate, NBFCs / HFCs
Anuj Puri, Chairman – ANAROCK Property Consultants
Today’s
announcement is much in line with the government’s aim to spur economic
growth and build a ‘self-reliant’ India. In the first of the series of
announcements
the FM will make over the next few days, the real estate sector,
NBFCS/HFCs and MSMEs got a major boost on day one.
Providing
a major relief to real estate developers, the government has extended
the timeline for project completions and registration by 6 months.
This
is a big move
that will destress developers significantly, since construction
activity had been halted all across the country. Homebuyers’ wait for
their homes will get extended by this move, but this was in any case
inevitable.
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| Anuj Puri, Chairman – ANAROCK Property Consultants |
Further,
the announcement of INR 30,000 crore special liquidity scheme for
NBFCs/HFCs and MFIs will ease liquidity woes of stressed players.
This
will benefit the real
estate sector significantly, given that NBFCs and HFCs are major
lenders to it.
As per ANAROCK research, NBFCs and HFCs together
contribute almost 56% of total lending to real estate in India
currently.
In
another major move to revive the MSMEs, the FM tweaked the definition
of such companies to provide benefits to many more units.
The
collateral-free automatic loan
for MSMEs worth INR 3 lakh crores will give a lifeline to nearly 45
lakh units for four years.
With this, the government aims to curtail job
losses, and this could indirectly benefit affordable housing.
Fear of
job losses may have caused many potential affordable
home buyers to defer their purchase decisions.
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