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FOCUS POINT
In order to revive around 1,600 areas across the country by 2022,
stalled housing projects across under the ambitious Pradhan Mantri
top cities in the country, the Union Awas Yojana (PMAY) scheme of
Cabinet has approved the setting up the Union Ministry of Housing and
of Rs. 25,000 crore (US$ 3.58 billion) Urban Affairs. Expected growth in
alternative investment fund (AIF). the number of housing units in urban
Government has created an Afford- areas will increase the demand for
able Housing Fund (AHF) in the National commercial and retail office space.
Housing Bank (NHB) with an initial The current shortage of housing in
corpus of Rs. 10,000 crore (US$ 1.43 urban areas is estimated to be ~10
billion) using priority sector lending million units. An additional 25 million
short fall of banks/financial institu- units of affordable housing are
tions for micro financing of the HFCs. required by 2030 to meet the growth
As of January 31, 2021, India in the country’s urban population.
formally approved 425 SEZs, of The growing flow of FDI in Indian
which 265 were already opera- real estate is encouraging increased
tional. Most special economic zones transparency. Developers, in order
(SEZs) are in the IT/ BPM sector
to attract funding, have revamped
their accounting and management
ROAD AHEAD
The Securities and Exchange Board systems to meet due diligence stan-
of India (SEBI) has given its approval dards. Indian real estate is expected
for the Real Estate Investment Trust to attract a substantial amount of
(REIT) platform, which will allow all FDI in the next two years with US$
kind of investors to invest in theIn- 8 billion capital infusion by FY22.
dian real estate market. It would
create an opportunity worth Rs..1.25 References: Media Reports,
trillion (US$ 19.65 billion) in the Press releases, Knight Frank
Indian market in the coming years. India, VCEdge, JLL Research,
CREDAI-JL, Union Budget 2021-22
The residential sector is expected Note: Conversion rate used in
to grow significantly, with the central October 2021, Rs. 1 = US$ 0.013
government aiming to build 20
million affordable houses in urban Major Source: IBEF
|30 thecorporatereview.com | India | Vol. 3 | Issue 5| July 2022 |31
