The Hindu Business Line : Credit Policy brings some relief to real estate sector

Bangalore, April 30 Important announcements by the Union Finance Minister, Mr P. Chidamabaram, and the Reserve Bank of India Governor, Dr Y.V. Reddy, today brought some relief to the real estate sector, which had feared demand slowdown due to higher interest costs and rising input prices.

Reacting to the statement in Parliament while replying to the Finance Bill and the RBI Governor’s announcement on Credit Policy, Mr J.C. Sharma, Managing Director, Sobha Developers Ltd, said ‘the Finance Minister as well as the RBI Governor gave a clear direction that growth of real estate sector will not get impacted.

“Accordingly, while the RBI Governor increased the limit of home loans from Rs 20-30 lakh for the provisioning purpose of banks, the Finance Minister made it clear that steel and cement prices cannot be increased any more.

“This augurs well for the real estate industry as home loan rates is expected to come down and cost of construction also will not go up.”

In a similar response, Mr Irfan Razack, Chairman and Managing Director of Prestige Group, said though the one-year extension of the Sunset clause for STPI to 2010 was not adequate, coming at a time when an all-round squeeze was being felt by the industry due to overall economic situation, it was a good augury.

Mr N.N. Upadhyay, Vice-President of the Bangalore Chamber of Industry and Commerce, said the manufacturing sector could heave a sigh of relief as export restriction of steel would make the input available easily and the prospect of further price escalation had also diminished.

More Stories on : Real Estate & Construction | Credit Policy

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page