The cash strapped realty companies can have a breather in budget for 2011-12 as the Finance Minister is expected to make announcement of a guarantee corpus for banks on realty lending. Track2Realty has learnt that the banks will get this guarantee corpus of Rs. 1000 crore to lend for housing projects.
The 2009 Mr. Salim committee report (parliamentary standing committee on housing) lays great emphasis on accelerating housing supply through increasing housing stock and promoting rental housing. It also refers to 24 million home shortage which will soon be 27 Million and ever increasing.
The Confederation of Real Estate Developers’ Associations of India has expressed displeasure about the proposed Model Real Estate (Regulation of Development) Act in its present form, saying it could lead to an escalation of prices of housing stock in the country by Rs 300 per sq ft.