NAREDCO Seeks A Real Estate Fund Of Rs 25,000 Crore From Budget 2023-2024

NAREDCO Seeks A Real Estate Fund Of Rs 25,000 Crore From Budget 2023-2024

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The government has been urged to introduce the second fund under the Special Window for Affordable and Mid-Income Housing (SWAMIH-2) in the upcoming Union Budget 2023–2024, which will be expected to be announced soon. 

In a letter to the finance minister Nirmala Sitharaman, National Real Estate Development Council (NAREDCO) requested that the program be expanded to cover new projects and suggested adding commercial and stress-free projects to the list of beneficiaries to broaden its appeal and support the nation’s real estate market.

The economy will grow, more jobs will be created, and significant investments will be attracted if at least Rs 25,000 crore is allocated for the entire next financial year, according to NAREDCO President Rajan Bandelkar.

Budget 2023-24

The industry group has suggested that the fund support total project funding without considering sales inflows. It also recommended that all projects should receive funding through the special purpose fund, regardless of their risk rating, with the strict process and project monitoring.

“Relaxing the eligibility requirements for SWAMIH fund beneficiaries, with strict monitoring and oversight, would lead to massive growth in the real estate sector and the economy as a whole, along with ensuring compliance and benefits to the genuine beneficiaries,” said Sathish Kumar M, chairman of NAREDCO Finance Committee (NFC).

SWAMIH Investment Fund was established in November 2019 with a total corpus of Rs 15,530 crore to finish stalled, brownfield, RERA-registered residential developments that fall under the affordable housing or mid-income category, have a positive net worth, and need last-mile funding to complete construction.

The government should set aside more money under the stressed fund SWAMIH, according to Venkatesh Gopalkrishnan, CEO of Shapoorji Pallonji Real Estate, as it will help boost consumer confidence and residential activity. However, to ensure that the industry can obtain funding from these institutions, the banks and NBFCs need to be strengthened.

Source-The Economic Times

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