Real estate sector seeks Rs 1.25 lakh cr stress fund
Real Estate

Real estate sector seeks Rs 1.25 lakh cr stress fund

National Real Estate Development Council (NAREDCO), an industry body, is seeking an estimated Rs 125,000 crore via many Housing Finance Corporations (HFCs) and Non-Banking Financial Companies (NBFCs) who they say are ready to establish such stress funds for the ailing real estate sector. According to the body, this will allow for faster sanctions and appraisals.

Niranjan Hiranandani, National President, NAREDCO, said that the industry appreciates the establishment of the Rs 25,000 crore Single-Window for Affordable and Mid-Income Housing (SWAMIH) fund to help the real estate, but allowing more similar stress funds will facilitate last-mile funding for stressed and stalled projects.

Enhancing loan to value (LTV) ratio up to 90% across the board for home loans for affordable houses of Rs 30 lakh or less and the same facility should be extended to MIG and HIG, is another demand that industry has put forward.

Allowing interest on home loans for income tax deductions without any ceiling, current interest deduction under section 24 of IT Act 1961 on housing loans of Rs 2 lakh should be removed in order to incentivise home buyers, said NAREDCO.

For rental housing, NAREDCO seeks enhancement in House Rent Allowance (HRA) Tax Exemption for rental housing, an increased depreciation rate for the rental projects like in commercial buildings and allowing ''carry on'' of loss from rental income will make a difference.

One-time restructuring of loans, allowing external commercial borrowings (ECBs) for the real estate sector and reforms for special economic zones (SEZs), including extending notification date for IT/ Information Technology Enabled Services (ITES) SEZs and withdrawal of MAT are some other demand put forward by NAREDCO which thinks this can go a long way in ensuring green shoots in the real estate sector.

Image source


4th Indian Cement Review Conference 2021

4th Indian Cement Review Conference 2021

17-18 March 

Click for event info


National Real Estate Development Council (NAREDCO), an industry body, is seeking an estimated Rs 125,000 crore via many Housing Finance Corporations (HFCs) and Non-Banking Financial Companies (NBFCs) who they say are ready to establish such stress funds for the ailing real estate sector. According to the body, this will allow for faster sanctions and appraisals. Niranjan Hiranandani, National President, NAREDCO, said that the industry appreciates the establishment of the Rs 25,000 crore Single-Window for Affordable and Mid-Income Housing (SWAMIH) fund to help the real estate, but allowing more similar stress funds will facilitate last-mile funding for stressed and stalled projects. Enhancing loan to value (LTV) ratio up to 90% across the board for home loans for affordable houses of Rs 30 lakh or less and the same facility should be extended to MIG and HIG, is another demand that industry has put forward. Allowing interest on home loans for income tax deductions without any ceiling, current interest deduction under section 24 of IT Act 1961 on housing loans of Rs 2 lakh should be removed in order to incentivise home buyers, said NAREDCO. For rental housing, NAREDCO seeks enhancement in House Rent Allowance (HRA) Tax Exemption for rental housing, an increased depreciation rate for the rental projects like in commercial buildings and allowing ''carry on'' of loss from rental income will make a difference. One-time restructuring of loans, allowing external commercial borrowings (ECBs) for the real estate sector and reforms for special economic zones (SEZs), including extending notification date for IT/ Information Technology Enabled Services (ITES) SEZs and withdrawal of MAT are some other demand put forward by NAREDCO which thinks this can go a long way in ensuring green shoots in the real estate sector. Image source4th Indian Cement Review Conference 20214th Indian Cement Review Conference 202117-18 March Click for event info

Next Story
Infrastructure Urban

DCPC Prepares for Special Campaign 5.0 with Focus on E-Waste

The Department of Chemicals and Petrochemicals (DCPC), Ministry of Chemicals and Fertilisers, is gearing up for Special Campaign 5.0, to be held from 2nd to 31st October 2025. The initiative will focus on e-waste disposal as per MoEFCC’s E-Waste Management Rules 2022, space optimisation, and enhancing workplace efficiency across field offices.Special Campaign 4.0, conducted between October 2023 and October 2024, delivered notable results in record management, grievance redressal, scrap disposal, and cleanliness drives.Key outcomes of Special Campaign 4.0Records management: 2,443 physical fil..

Next Story
Real Estate

BlackRock India Leases 1.4 Lakh Sq Ft in Bengaluru

BlackRock Services India, the domestic arm of global asset manager BlackRock, has leased 1.4 lakh sq ft of office space at IndiQube Symphony in Bengaluru, according to Propstack data. The 10-year deal is valued at around Rs 4.10 billion.The lease, among the largest transactions in India’s co-working sector, highlights the growing preference of global institutions for flexible office providers. The agreement, commencing October 1, 2025, covers ground plus five floors in KNG Tower 1 at Ashoknagar, MG Road — one of Bengaluru’s prime commercial hubs.As per the lease document, BlackRock will ..

Next Story
Infrastructure Transport

L&T Bags Rs 25–50 Bn Order for Mumbai-Ahmedabad Bullet Train Track Works

Larsen & Toubro’s (L&T) Transportation Infrastructure business has secured an order valued between Rs 25 crore and Rs 50 billion from the National High Speed Rail Corporation Limited (NHSRCL) for the Mumbai-Ahmedabad High Speed Rail (MAHSR) corridor.The contract, Package T1, involves the design, supply, construction, testing, and commissioning of 156 route km of high-speed ballastless track on a Design-Build Lump Sum Price basis. The stretch runs from Mumbai’s Bandra-Kurla Complex to Zaroli village in Gujarat and includes 21 km of underground track and 135 km of elevated viaduct.Se..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?