In response to the growing demand of ready and near to completion homes made real estate developers to expedite projects delivery amid the challenges triggered by the outbreak of the Covid19 pandemic.
Government Funds Helps to Drive Realty Construction Activity
The initiatives of the government including the major funding for stressed real estate projects through SWAMIH Fund and the liquidity generation measures of the Reserve Bank of India have driven these projects to be completed.
As per experts report, in 2020, 190 housing projects throughout the country that were stuck and delayed, with more than 73,560 units completed. The delivery of ready-to-move inventory is the most key component in the present residential market situation and is expected to continue to be the major factor during 2021.
The Indian real estate market has suffered from project delays in the last 10 years. This even had no effect on the implementation of RERA. In the course of the development of the Alternate Investment Facility in late 2019, a corpus of Rs 25,000 crore was interfered with by the liquidity crunch for developers.
This method of financial leverage of the last mile has been applied to the Special Window for the completion of Affordable and Mid-Income Housing Projects. SWAMIH I was initiated by this government-sponsored programme with the objective to complete stressed projects and deliver them to buyers. The construction company has expanded considerably in all projects funded by the SBICAP Managed Fund.
Government fundings enables developers to actively complete project construction, and they understand that sales can only be recovered once the project is finished, considering that most home buyers are now only searching for finished or almost completed houses.
Even as two major projects are near completed and the occupational certificate is currently being applied, in the second half of this year more than 3,000 homes will be delivered in seven phases of other projects throughout the country.
As per industry experts, these projects completions are great accomplishments in view of Covid 19's impact on real estate construction activity.
By: Shailaja K