PRESS RELEASES
Developers Eyeing IPO, REITs or Equity participation Routes for Financing Projects Post COVID-19 – CREDAI
The Confederation of Real Estate Developers’ Association of India (CREDAI) today organized CREDAI Financial Conclave 2021 in Mumbai to look for newer avenues of financing for developers by collaborating with Banks and NBFCs given the sudden rise in housing demand post COVID-19. The global pandemic, availability of the lowest home loan interest rates and the festive season has augured exponential growth for the ecosystem. However, a lot of developers are cash-starved given the lack of financing options post the implementation of RERA & GST. In 2021, Real Estate companies in double digits went public and CREDAI is hopeful that with this collaboration, innumerable developers will be able to expand into multiple cities, launch newer projects, and take the IPO route. The all-day event brought together industry leaders across Banking & Finance and Real-Estate industry who have been partners in the ecosystem growth story across the years. During the event, the industry leaders discussed the evolution of both the sectors and the potential it holds for the years to come.
The event was inaugurated by Shri. Deepak Parekh, Chairman, HDFC, LTD accompanied by the esteemed presence of Mr. Satish Magar, Chairman, CREDAI National, Mr. Harsh Vardhan Patodia, President, CREDAI National. Panel discussions & fireside chats were conducted on topics such as Equity Funding for Land, Construction Fund for next 2-3 years, Family Office Funding, Decoding Warehousing, Resi vs Commercial REITs, and startups who have changed the real estate markets today in which industry stalwarts across sectors participated and shared their insights.
Speaking on the occasion, Harsh Vardhan Patodia, President, CREDAI National, said, “With the advent of policy reforms like RERA and GST, business model and financing routes through bulk sales have undergone major transformation where developers are now forced to look at other avenues. With more and more developers eyeing IPO route and expansion in newer markets, there is a need to work closely with NBFCs to iron out these issues and make newer tools like REITs available to them. This will help in regaining India’s spot as one of the fastest growing economies in the world again.”
Deepak Goradia, President, CREDAI – MCHI the host association, said, “The financial institutions play a major role for both buyers and real estate developers. The growth of the real estate loan industry can be attributed to an increase in the demand for streamlined financing services and an increase in the purchase of real estate properties by businesses and individuals. Furthermore, the ability to repay the loan amount over a longer period of time contributes to market growth. The rise in real estate prices in India, as well as the emergence of urban areas across the country, will open up new opportunities in the future years.” Office bearers and members of CREDAI chapters from across India as well as bankers and financial experts were also present at the conference.
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