The housing and real estate sector, including infrastructure, are accorded special preferences and treatment in the budget, particularly in 2023-24. This could be one of the reasons that the corporation might undertake financing real estate activities – Sanjay Kulshrestha, Chairman, HUDCO
Hyderabad: In view of the growing resurgence that the real estate sector is experiencing post-Covid crisis, the Housing & Urban Development Corporation (HUDCO) is likely to consider financing real estate corporates in the private regime beginning next year, says it’s Chairman Sanjay Kulshrestha, while addressing NAREDCO’s 16th National Convention, at New Delhi.
Currently, the corporation does not undertake, as per its prevailing mandate, corporate financing in the private sector for the real estate and housing sector, and its activities are largely confined to the government and government-owned utilities. He said that the housing and real estate sector, including infrastructure, are accorded special preferences and treatment in the budget, particularly in 2023-24.
“This could be one of the reasons that the corporation might undertake financing real estate activities,” the chairman said, indicating that the corporation would make necessary consultations with concerned authorities so that it becomes feasible for them to be permitted to go in for private sector financing, given the scope and diverse opportunities that the housing and affordable housing sector provides.
On the occasion, Joint Secretary of Housing and Urban Affairs emphasised the issue of rental housing and affordable rental housing. The NAREDCO has been seeking the attention of the government towards rental housing, particularly for that segment which cannot construct its own housing units and wants to live in apartments provided on lease at a rent that suits both parties.
The Joint Secretary was of the opinion that EMI payments for housing units should ideally stay at 30 per cent of what is earned by the unit seeker for affordable housing because it is a sort of acceptable thumb rule all over the world. In this context, the case of rental housing and affordable rental housing becomes a case study for which NAREDCO is requested to look into. G Hari Babu, President of NAREDCO, in his concluding remarks of the conference, pledged the support of his association to the Ministry of Housing and Urban Affairs and committed that it would always work in close partnership with its mentor for a win-win situation. “This spirit of ‘Bhagidari’ would facilitate the achievement of the commitments made by the government for the masses in achieving ‘Housing for All’.