SBI seeks new financial products to refinance long-term infrastructure projects, exploring options including takeout finance and pension funds.
LIC Housing Finance Limited aims to establish a residential real estate fund of Rs.1000 Cr via external commercial borrowings to enhance affordable housing.
Mumbai real estate prices have declined due to higher interest rates, stricter housing loans, and increased repo rates. The RBI's strict lending policies and over-supply have also contributed to this drop.
The recent budget allows external borrowing for low-cost housing, improving funding availability, but still falls short of the real estate sector's wider expectations.
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.
Budget 2012-13 proposes external commercial borrowing for affordable housing, a Credit Guarantee Trust Fund, and increased Rural Housing Fund provisions. Real estate players express disappointment, citing increased costs from the cement industry tax and service tax hike.
Realty leaders express disappointment over budget allocations for housing, calling for stronger support for affordable housing initiatives.
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.
Chennai Realtors Seek Enhanced Tax Exemption to Boost Real Estate Market
SBI Hikes Loan Interest Rates by 75 bps, Affecting Housing and Auto Loans
Affordable housing concept emerged as a ray of hope in India's residential realty market after economic recession, aiding its early recovery.
RBI restricts Urban Co-operative Banks' real estate exposure to 15% of total deposits, impacting commercial and housing loans.
Fund-starved realtors may receive relief as banks consider lending on a case-by-case basis, especially for those with genuine liquidity issues. This follows PM Manmohan Singh's assurance and RBI's recent moves to provide liquidity.
Maharashtra's slum rehabilitation scheme faces challenges due to the real estate market slump, impacting developers' profitability and project timelines. SRA CEO remains optimistic, citing potential demand for cheaper flats.
Housing loan growth declines to 12% in 2008, while personal loan and real estate sector credit expansion slows down.
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.
The Goa government has raised stamp duty on properties and infrastructure tax, impacting beach-side home buyers, as part of the 2008-09 budget.