RBI clarifies issues regarding ‘affordable housing’
On Tuesday, the Reserve Bank of India (RBI) clarified the issues regarding ‘affordable housing’; with the apparent objective of giving the affordable housing segment a notable boost.
According to the RBI’s clarifications, ‘affordable housing’ loans will comprise home loans which will be given by banks from the proceeds of long-term bonds of a maturity period of up to seven years. These home loans can go up to Rs.50 lakh in Metro cities, and Rs.40 lakh in non-Metro cities.
The RBI has also clarified that the criteria for housing units to qualify as ‘affordable housing’ will include the stipulation that the unit price of the houses should not be more than Rs.65 lakh in Metros and Rs.50 lakh in non-Metros.
Against the backdrop of the clarifications issued by the RBI, it is speculated that realty developers will apparently launch smaller units, so that the overall ticket price remains within the parameters set by the apex bank.
With the RBI’s clarifications set to give a definite boost to the ‘affordable housing’ segment, Sanjay Dutt – Executive MD-South Asia, Cushman & Wakefield – said: “Allowing banks to raise long-term funds at cheaper rates, including through ECB, will help developers and government agencies involved in affordable housing projects to increase the supply of housing and reduce the demand-supply gap.”
Source- The Hindu
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