FM meets realtors, homebuyers; govt assures steps to boost liquidity, demand

The government on Sunday said it will soon address issues affecting the real estate sector after industry bodies and homebuyers met Finance Minister Nirmala Sitharaman to flag their concerns regarding liquidity crunch, demand slowdown and stalled projects.

The finance minister on Sunday held two separate meetings -- the first with the two apex realtors' industry bodies CREDAI and NAREDCO, and the second with homebuyer associations, to discuss the issues concerning the real estate sector and steps to be taken to strengthen the industry.

Housing and Urban Affairs Minister Hardeep Singh Puri, Minister of State for Finance Anurag Thakur and top officials from the departments of economic affairs, revenue, housing, CBDT, corporate affairs and RERA were also present in the meetings.

According to sources, representatives of CREDAI and NAREDCO said that there is "unrest" in the sector because of liquidity crunch and poor sales, and demanded that banks and NBFCs should be encouraged to fund projects.

They also expressed concern that the situation could worsen during the coming festive season when generally demand is higher.

There would be a separate high level meeting, under the chairmanship of the cabinet secretary, in next few weeks to discuss setting up of a stress fund to deal with stalled projects and bail out lakhs of stuck homebuyers, sources added.

Briefing the media after the meeting, Puri said: "Lot of useful discussions happened at the meeting with the real estate industry. We looked at a number of issues, clarified a number of issues and the government will be addressing these issues in the days to come."
CREDAI Chairman Jaxay Shah said, "We had a great positive, patient hearing from finance minister. Government is cognisant about the matter affecting real estate industry including the liquidity crunch and taxation issues. We are very hopeful to have some good and tangible results in coming weeks."
NAREDCO President Niranjan Hiranandani said: "As you know, the real estate industry is going through a crisis, as is rest of the whole economy. So we are very glad that the finance minister and housing minister met us on a Sunday morning to understand the situation."
Asked about the government's response, Hiranandani said, "No response in terms of what actions the government wants to take, we are not aware and nor was anything committed on behalf of the government."