Affordable Housing Becoming Mainstay For HFCs

HFCs are benefiting from the three major reform measures – demonetization, RERA and GST:

Housing and housing finance are the two related industry segments that are forecast to grow phenomenally in the years ahead, what with the government’s thrust on Housing for All by 2022 and funding massive construction activities. The estimate is that the country needs around 1 crore new houses at this point of time and with the population expected to grow, this is figure is set to go up.

There are 71 housing finance companies registered under the National Housing Bank Act 1987 and operational, including those with total focus on rural housing. Finance minister Arun Jaitley had announced in the budget for 201819 that the government would establish a dedicated affordable housing fund in the National Housing Bank through various funding measures. This measure is likely to increase funding options for housing finance companies (HFCs) operating in the affordable housing space

3 MAJOR REFORMS

The government is also offering all the sops possible to realize the aim of housing for all by 2022 like various concessions, the most important of them being a lower Goods and Services (GST) rate. Besides, two other major reforms - demonetization and the enactment of the Real Estate (Regulation & Development) Act (RERA) have impacted the industry in a positive manner.