The Unit Trust of India and Life Insurance Corporation and housing development

The public sector owned Unit Trust of India (UTI), which already contributes to the equity of housing finance institutions and gives loans has launched a Housing and Construction Development Fund.  After the entry of the UTI, the capital market in housing has got another boost.  This has helped augment resources for the housing and construction sector.
 
Furthermore, the Life Insurance Corporation (LIC) has so far lent over Rs.2,500 crore to the State Apex Cooperative Societies, the Housing and Urban Development Corporation (HUDCO), the Housing Development Finance Corporation (HDFC), the state agencies and policy holders.  The General Insurance Corporation (GIC) has also made similar efforts in this respect.  The LIC has recently introduced a new scheme under which policy holders will be entitled to avail loans for the purchase of newly constructed flats, houses, flats under construction or even for the existing flats constructed less than 15 years ago.  
 
The state government is considering a mechanism to channel a part of the savings of the state government employees into the provident fund, gratuity fund and group insurance fund so as to increase the investments into the housing sector.  Since the state has been moving forward on loans and grants offered by the central government, the only way out to generate finances for investment in real estate is through channeling the incomes and incentives availed by the government employees.
 
In Kerala Houses and properties are now witnessing an increase in investments from all parts of the globe.  The real estate values are continuously appreciating like never before mainly due to this one fact.  But the most distressing fact is that people with small and medium incomes are unable to make their presence felt in this hot market mainly due to the continuous erosion of their incomes due to the rising cost of all essential items.