Credai supports lower interest rate control to boost housing sector
Mr. C. Shekhar Reddy, President Credai-National, says that the real estate sector has been witnessing high input costs, high cost of funds and a moderate demand over the last few months. The real estate sector has been neglected and requires immediate concern to develop confidence.
Mr. Anuj Puri, Chairman and Country Head, JLL India, says that the RBI is clearly without choice in this topic. The minimum it could do to maintain equitable to all business sectors was to keep the repo rates same, which RBI has done. Any increase will give pressure on the already struggling rate-sensitive sector like real estate. He also added that the consumption is already minimum in these sectors. The real estate sector will keep a hawk eye on decreased in inflation instead of rates to be decreased.
Mr. Lalait Jalan, CREDAI Chairman, says that they hope that the era of interest rate increase has ended.
Mr. Jain says that they hope that the RBI will now focus for continuous decrease in repo rates. This will have positive result on the growth of real estate sector which provides strength to GDP.
The real estate sector serves to the country’s GDP but the development is stuck because of RBI’s negative weightage to the industry and high interest rates which is not suitable to either the developer or the home buyer.
Source: The Business Line
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