Delay in real estate projects is something that invites disapproval and criticism in the collective consciousness.
Sale of housing units have virtually come to a halt in Noida Extension following a Supreme Court order quashing land acquisition from farmers by the state authorities in some parts of the area.
Though the Reserve Bank of India has laid out strict due diligence standards for banks for sanctioning loans to the real estate sector, industry experts believe lending to the sector will not decline.
Noida extension seems to be taking its toll. India’s largest home loan provider State Bank of India (SBI) said on Friday, July 8, it will not finance real estate projects which are mired in disputes over acquisition of land.
The Reserve Bank of India (RBI) has asked banks to go slow on lending to the commercial real estate projects. The central bank fears an asset price bubble.
Standard & Poor’s Rating Services on Monday, July 4, said the surge in real estate prices in some pockets in India could emerge as a credit risk for banks.
Property prices in seven cities across India dropped by 2.63 per cent to 17.6 per cent during the January to March quarter, according to the latest data released by the National Housing Bank.
Alarmed by inflated valuations of real estate properties for the purpose of loans, the Reserve Bank of India has asked all banks to submit an action-taken report on the issue.
CRISIL Research says that there will be 5% correction in the realty prices in Ahmedabad this year.
Newspaper advertisements and other branding collaterals of some of the real estate projects across the country attract the eye balls for what Indians have always aspired for—International living.