IIFCL Set to Revolutionize Affordable Housing Finance in India
India Infrastructure Finance Company Ltd plans to enter the affordable housing segment, a move that could give a boost to the sector. The company is in talks with state governments and housing departments to facilitate public-private partnerships.
Affordable HousingReal EstateInfrastructure FinanceIndia Infrastructure Finance Company LtdPublic Private PartnershipsReal Estate NewsJun 26, 2024
IIFCL, a wholly owned Union government company established in 2006, provides long-term financial assistance to viable infrastructure projects. Since September 2013, it has been under the regulatory provision of the Reserve Bank of India (RBI) as a registered non-deposit-taking non-banking financial company.
The official emphasized the need for concerted efforts to involve public authorities in land allocation and foster public-private partnerships (PPPs). Anuj Puri, chairman of real estate consulting firm Anarock Group, believes that the potential for affordable housing infrastructure financing in India, supported by government initiatives, is aimed at financial inclusion.
According to Anarock Research data, sales in the budget homes category (priced under Rs 40 lakh) declined to about 20 per cent in the first quarter of 2024 from over 38 per cent before the pandemic in 2019. Sathish Kumar, chairman of the National Real Estate Development Council, Karnataka, pointed out that affordable housing often lacked attractiveness for builders due to the high cost of funds and lack of secure land allotment.
Vikas Tomar, executive president & business head of online real estate firm Square Yards, highlighted the government’s focus on incentivizing affordable housing through measures like interest subsidies under the Credit-Linked Subsidy Scheme, tax benefits for developers, and infrastructure status for affordable housing projects, which streamline funding access.
IIFCL’s standalone net profit increased by 44 per cent to Rs 1,552 crore in 2023-24, driven by increased lending and improved asset quality. The company financed 760 projects with a total outlay of Rs 13.8 trillion during the year. Its standalone portfolio grew 21 per cent year-on-year to Rs 51,017 crore in 2023-24.
information India Infrastructure Finance Company Ltd (IIFCL) is a state-owned non-banking financial company established in 2006 to provide long-term financial assistance to viable infrastructure projects. Anarock Group is a real estate consulting firm, while Square Yards is an online real estate firm. National Real Estate Development Council, Karnataka, is a trade association representing the real estate industry in Karnataka.
India Infrastructure Finance Company Ltd (IIFCL) is a state-owned non-banking financial company established in 2006 to provide long-term financial assistance to viable infrastructure projects.
Frequently Asked Questions
What is IIFCL planning to do in the affordable housing sector?
IIFCL is planning to enter the affordable housing finance segment, a move that could give a boost to the sector.
What is the current state of affordable housing in India?
According to Anarock Research data, sales in the budget homes category (priced under Rs 40 lakh) declined to about 20 per cent in the first quarter of 2024 from over 38 per cent before the pandemic in 2019.
What are the challenges faced by builders in affordable housing projects?
The challenges faced by builders in affordable housing projects include the high cost of funds and lack of secure land allotment.
What are the government initiatives to incentivize affordable housing?
The government initiatives to incentivize affordable housing include interest subsidies under the Credit-Linked Subsidy Scheme, tax benefits for developers, and infrastructure status for affordable housing projects, which streamline funding access.
What is the financial performance of IIFCL?
IIFCL’s standalone net profit increased by 44 per cent to Rs 1,552 crore in 2023-24, driven by increased lending and improved asset quality.
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