Realty Sector Needs Innovative Funding Modes: NAREDCO
The Indian realty sector required innovative methods of funding during the ongoing slowdown and liquidity crisis, the National Real Estate Development Council (NAREDCO) said, here on Monday.
According to NAREDCO, $2 trillion investment is required till 2022 to meet the shortfall of 110 million housing units. "It's imperative for the government to consider innovative funding mechanism to speed up construction and help in deliveries," it said in a statment.
NAREDCO will organise its national convention on August 19. It would act as a platform to initiate dialogues to review the cascading effect of economic reforms and discover an innovative solution for quick revival of the real estate, it said.
"The sector is facing major challenges of liquidity squeeze, ease of doing business, land acquisition, lack of skilled workforce and higher development rates, which shall be addressed by the government," it said.
On the funding woes for stalled projects, including those of Amrapali Group and Jaypee Infratech, which are either under judicial scrutiny or going through insolvency, NAREDCO President Niranjan Hiranandani said while a stress fund might be required to complete the projects, the Supreme Court's recent order in the Amrapali case provided a broad guideline on ways to complete them.
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