LIC Housing Finance Limited aims to establish a residential real estate fund of Rs.1000 Cr via external commercial borrowings to enhance affordable housing.
Government initiatives, including ECBs for low-cost housing and interest subventions, are poised to boost affordable housing in Mumbai's outskirts, enhancing long-term price stability.
India's housing sector's GDP contribution is projected to rise from 5% to 6% due to increased investment, but the 2012-13 Budget lacks substantial support for the real estate industry's growth.
RBI's rate cuts and government stimulus aim to revive the housing market, but developers say more is needed to address credit flow challenges.
Housing loan demand declines as interest rates remain high, with growth rates halving from 25.8% to 12% within a year, according to the Reserve Bank of India.