Unchanged rates will slow down realty growth: Developers
Reserve Bank of India holding on policy rates can put more stress on real estate market, says real estate developers.
RBI should have cut down the rates as the growth rate is coming down and industry and government is also calling for a rate cut.
Lalit Kumar Jain, national president of Confederation of Real Estate Developers Association of India (CREDAI) said that RBI taking such a stubborn stand will further obstruct the growth in the real estate.
The real estate developers are facing difficulties as on one hand, property sales are declining and on the other hand, in last two years, the borrowing rates of developers have risen by 150-200 basis points.
The absorption rates of home in NCR have gone down by 30 percent and 28 percent in Mumbai metropolitan Region on yearly basis in the September quarter, according to a realty research firm.
Anshuman Magazine, chairman & MD, CBRE South Asia said that it is really disappointing that RBI has not cut down the key policy rates. They are hoping some relaxation in the form of a cut in cash reserve ratio (CRR) and Repo rates as the real estate industry continue to face tough situation. Also, they are hoping that the next credit policy decision would consider reduction of CRR which will bring a little liquidity in the banking sector.
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