J. C. Sharma, Vice-chairman and managing director, Sobha Ltd
It’s a bit delayed but definitely much required to protect the interests of customers and other stakeholders. The government had announced measures earlier too, but this time they are categorical and clear that only viable projects, duly vetted by SBICAP Ventures, where construction has happened and some sales have taken place, will be funded through alternative investment fund. If executed well, many will benefit and overall sentiment will improve. This will lead to improved sales, especially in the under-construction segment from which customers were staying away due to fear of delay. Things are likely to improve after this.
Ramesh Nair, CEO and country head – India, JLL
The announcement is likely to become a game changer as it now includes projects, which are considered as non-performing assets (NPAs) or are under the National Company Law Tribunal (NCLT); such projects were left out earlier. This will be a big relief for buyers, who have been suffering due to uncertainties in deliveries. It will also protect the interests of private investors who are expected to contribute nearly 60% to this proposed fund. Stringent criteria with respect to projects being net-worth positive, registration with RERA, and appraisal by an investment committee will ensure safe commercial returns for investors.
Navin Raheja, Chairman and managing director, Raheja Developers
It is great news for homebuyers who have been waiting for the delivery of their homes for several years. The announcement is likely to ease liquidity for developers—one of the biggest problems being faced by the sector for several years—and help them complete projects. This will surely revive the real estate sector and bring back confidence among buyers. This, in turn, will put the Indian economy back on a high-growth track.
However, since many projects have flats of multiple configurations—ranging from one-bedroom to five-bedroom—the condition of capping prices is impractical and needs to be done away with.
Dhruv Agarwala, Group CEO, Housing.com, PropTiger.com, Makaan.com and Fastfox.com
The government’s ₹25,000 crore bailout package for stalled projects will go a long way in improving the health of the housing sector. One of the big issues the sector currently faces has to do with liquidity. The fact that the government has modified its initial plan and will now cover NPA- and insolvency-hit projects under the fund would ensure that more buyers will benefit. The relief fund would kickstart the process of restoring normalcy to the sector, while encouraging buyers to stop being fence-sitters. As a result of this, we expect sales numbers to improve in the coming quarters.