The year 2013 ended with the then United Progressive Alliance (UPA) government setting up the Mortgage Risk Guarantee Fund to help low-income and economically weaker groups to access credit from banks and financial institutions.
The emphasis on housing for all and affordable housing continued throughout 2014. The National Democratic Alliance (NDA) government underscored housing for all with the Union Ministry of Housing and Urban Poverty Alleviation making a request for granting infrastructure status to affordable housing projects.
New Year raises the hope that the ambitious target of achieving ‘Housing for All by 2022’ will impart some buoyancy to real property development. Together with government-set targets for the housing sector, the prospects of fall in interest rate; easing of FDI norms in real estate development, and the SEBI-go-ahead for Real Estate Investment Trusts (REITs) in September 2014 are expected to play a big role in what happens to the real estate sector during the current year. Industry players are convinced that both REITs and easing of FDI norms will play positive roles for the cash-starved sector.
Requirements on minimum area, minimum capitalisation and repatriation of investments have been changed to draw foreign direct investment. Activation of REITs will help small investors take advantage of the opportunities provided by real estate sector, which were, till now, virtually closed to them.........Read more
Source web page: The Hindu