Investors upbeat on housing sector

Betting big on the budgetary initiatives intended to give housing a big booster, investors are now upbeat on housing finance and real estate companies for rosy returns to the tune of 15-40%. The Union Budget for 2017-18 has given infrastructure status to the affordable housing segment, a move that will help housing finance companies raise funds at cheaper rates. It has also proposed to increase allocation for the Pradhaan Mantri Awas Yojna (PMAY), which would pave the way for construction of more houses as timelines for completion of projects too has been extended to five years from three years. Demand for affordable housing finance is likely to increase following higher allocation for PMAY, ICRA said in a report, adding that for builders and lenders, Budget has given relief for both housing finance and real estate companies, say experts. Real estate investment trusts (REIT), which will bring in transparency and lower the cost of funds, will see huge investor response from investors, it added.