‘HDFC keen to contribute to Rs 20k cr realty fund’

REALTORS SLASH AD SPENDS BY OVER 50% AS SALES PLUNGE

Making a strong case for supporting developers to help them come out of crisis, eminent banker Deepak Parekh said the government incentives have helped the affordable housing sector gain traction but homebuyers now clearly want "right developers, right price, right size and right financier".

Parekh, chairman of housing finance major HDFC Ltd, also said the government's proposed Rs 20,000 crore fund will help the realty sector in a big way to get their pending projects completed and his company is very keen to contribute to this fund.

Asked whether he would also like to join the board to help manage this fund as a reputed industry voice, Parekh, however, said it was too early to comment on that.

"This fund, in which the government will put in Rs 10,000 crore and a similar amount will come in from public and private sector institutions, is a pathbreaking move.

"The government is doing its best in supporting this industry and we have to get over the past sins of buying land at high prices and building luxury apartments. There is a limit how many luxurious apartments can be sold," Parekh told PTI in an interview.

He also said the perception about the entire sector witnessing a slump was wrong as phenomenal sales were happening in the affordable and mid-market segment. MUMBAI: The real estate sector, one of the biggest ad spenders during festival season, has slashed its ad budget by over 50 per cent as the sector is facing slowdown in demand due to various reasons including tight liquidity situation. According to advertising industry experts, the real estate sector which is grappling with liquidity issues and large inventories since demonetisation in November 2016, has massively reduced their ad spends on TV and print media, and have moved a potion of their ad spend to the digital space to cut cost. "Realty sector has been sluggish since the last two years and deepening general slowdown has only exasperated it," media and digital marketing communications company Dentsu Aegis Network CEO for Asia Pacific Ashish Bhasin said.