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The Confederation of Real Estate Developers’ Associations of India has expressed its disappointment with the status quo on the RBI policy rates and has demanded a reduction in interest rates to facilitate lowering of the entry barrier and spur demand for the real estate sector.
The Credai has emphasised the need to device a formula to make home loan rates independent of inflation, keeping in view the mission to provide housing for all by 2022 and the overall impact of the real estate sector on triggering the GDP growth.
C Shekar Reddy, National President Credai, in a statement said, “The real estate sector has been dabbling with high cost of land, labour, material, funds and high rates of taxation along with moderate demand over the last few months. The industry was looking forward to a reduction in interest rates and improved liquidity to usher in growth and development.”
The housing sector requires capital investment of about $1.2 trillion. The RBI should, therefore, liberalise norms, increase lending to the real estate sector in line with the global exposure of 24-32 per cent as compared to the present 12 per cent, and lower interest rates for a high multiplier effect, he said.
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