Only 8% of housing project launches in Q2 hit by subvention scheme ban

Ban impact is also minimal given that, as early as 2013, RBI had already curbed banks' up-front loans to developers offering such schemes for under-construction or greenfield projects

The National Housing Board’s (NHB) recent directive to housing finance companies to refrain from giving loans under subvention schemes was not as crippling as was initially assumed. 

Real estate consulting firm Anarock Property Consultants' research has revealed that out of the total 280 projects launched in the April-June quarter of calendar year 2019, only about 23 projects, or eight per cent, were marketed under subvention schemes. These 23 projects consisted of 7,620 units, or about 11 per cent of the total 69,000 units launched in the second quarter of 2019.

"The ban on subvention schemes will doubtlessly contribute to the