Flexibility Required For Distressed Funds In Real Estate

The real estate sector, still stressed due to the double impact of demonetisation and GST (much like the mythological Scylla and Charybdis), is yet to absorb the impact fully when faced with the Covid situation. With home buyers' concerns prioritised by the government and the judiciary, there may be a growing sense of despair amongst the majority of developers, with no specific reforms for the sector other than some in the affordable housing space. On the other hand, the housing finance companies (HFCs), while keeping a close eye on the recoverability of their retail and wholesale books amidst the moratorium imposed by the RBI, are preparing for a change of guard as the regulatory baton transitions from National Housing Bank (NHB) to the central bank.