Real estate stocks had a fantastic day on September 11, 2019 with Nifty Realty ending over 4 percent higher and was the top sectoral gainer.
Minister of State (MoS), Finance & Corporate Affairs, Anurag Thakur said that the government may make some announcement for the realty sector in the coming days, as reported by CNBC-TV18.
The government met the stakeholders, industry leaders, homebuyers, real estate sector and discussed the difficulties faced by the industry in various sectors in the last few days, Anurag Thakur said in an interview to ET Now.
Over the last few weeks there has been talk that the government may unveil a set of measures that may include a stressed asset fund for the real estate sector, especially aimed at bailing out stalled housing projects where thousands of homebuyers have invested their hard-earned money and have not received possession for over a decade.
“We have had consultations with homebuyers, who have paid their advances and sitting without knowing what to do, and promoters that are sitting with no money to further their projects,” the finance minister said.
Oberoi Realty ended Wednesday’s session with gains of over 9 percent followed by Godrej Properties, up 6 percent, DLF and Sunteck Realty gaining over 4 percent each. The other gainers included Prestige Estates and Sobha.
ANAROCK research said as many as 220 projects, equaling 1.74 lakh homes, are completely stalled in the top seven cities alone. Launched either in 2013 or before, these projects have absolutely no construction activity going on. The overall value of all stalled units is estimated to be more than Rs 177,400 crore. Most projects have been grounded due to either liquidity issues or on account of litigation.
Funding to real estate has got constrained over the past year which has resulted in many projects being stuck because of a lack of funds to. “Unless there is directed policy action at stressed real estate assets (of which there hasn’t been mention so far), these assets could continue to remain stuck and lose more value,” Morgan Stanley said.
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