Cut Home Loan Interest: Credai
The real estate sector has been hit by high costs of land, labour, material, funds and high rates of taxation along with moderate demand in the last few months,” said C Shekar Reddy, Credai president
Oct 01, 2014
Source : The New Indian Express


HYDERABAD: The Confederation of Real Estate Developers’ Associations of India has appealed to the Reserve Bank of India to reduce the home loan interest rates.

The RBI, in its fourth bi-monthly monetary policy announced on Tuesday, kept key rates unchanged.  A revision of rates is expected to spur the demand for housing which has been witnessing a subdued growth for some time. Currently, the interest rates range between 10.15 and 11.45 per cent for home loans in the country.

“The real estate sector has been hit by high costs of land, labour, material, funds and high rates of taxation along with moderate demand in the last few months,” said C Shekar Reddy, Credai president. He said the industry was looking forward to a reduction in interest rates and improved liquidity to usher in growth.

As per estimates, the housing sector requires capital investment of about $1.2 trillion. Emphasising the need to make home loan rates independent of inflation, Reddy said such a forumla would enable to achieve the government’s mission of providing housing to all by 2022.

“Developers are looking for a roadmap for utilisation of the funds allocated to trigger the demand and growth in the real estate sector. Clarity in policy along with a lowering of the cost of borrowing will help developers firm up their plans to bridge the housing shortfall of 18.7 million units in urban areas and gear up to meet the expected demand for 69 million homes by 2030,” Reddy said.

Recently, the apex bank has allowed banks to issue long-term bonds with a minimum maturity of seven years to raise funds for affordable housing projects and treat loans under the priority sector lending for affordable housing and home loans to individuals up to `50 lakh for houses worth `65 lakh in six metros and `40 lakh for houses worth `50 lakh in other locations.

“These initiatives along with the increased limits for tax deduction under Sections 80C and 24(b) of the Income Tax Act have enthused people to acquire residential property. However, lending rates are still high and limit the eligibility of customers,” he said.


Latest Realty News

Govt Issues Order on Land for Industrial Estate, 2nd Airport
Oct 01, 2014
The State Government has asked Khurda district administration to identify 10,000 acres of land for establishment of an industrial estate
Banks to sell DDA housing scheme forms on holidays
Oct 01, 2014
Banks have offered to sell forms of DDA's housing scheme even on national holidays with the deadline to submit them drawing closer
Mhada directed to pay buyer Rs 50,000 for substandard flat
Oct 01, 2014
Bringing the Maharashtra Housing and Area Development Authority (Mhada) under the ambit of the Consumer Protection Act, a consumer forum recently reprimanded the authority for providing substandard homes after a buyer complained about leakages
Knight Frank Global Cities Report 2015 ranks Sydney 5th in rental forecasts
Oct 01, 2014
The latest Knight Frank Global Cities Report 2015 has ranked Sydney fifth among 15 global cities in rental forecasts
Realtors Unhappy Over Status Quo in RBI Monetary Policy
Oct 01, 2014
The Confederation of Real Estate Developers' Associations of India (CREDAI), the apex body of realtors in the country, expressed disappointment over the Reserve Bank's policy to keep key rates unchanged
US to Help India Develop Three Smart Cities
Oct 01, 2014
The US will help India in developing three smart cities in Allahabad, Ajmer and Visakhapatnam
No Finding Received on Rs. 30 Crore Service Tax Evasion Charge: DLF
Oct 01, 2014
DLF, India's largest realty firm, said it has not received any findings from authorities on alleged service tax evasion of about Rs. 30 crore
Rajan Says Real Estate Reasonable, Let's Not Count Aurangzeb Road and Malabar Hill
Sep 30, 2014
Reserve Bank Governor Raghuram Rajan on Tuesday said property prices in the country are not frothy barring a few pockets
Govt bought pvt forest, sold it to real estate cartel, says PAC
Sep 30, 2014
The public accounts committee (PAC) of the Goa state legislative assembly 2013-14, has alleged a prima facie fraud in the disposal of six hectares of land
BDA plans revamp to face new challenges
Sep 30, 2014
The Bhubaneswar Development Authority (BDA) is planning a massive shake-up in its manpower and decision-making process to suit its centemporay role

Latest Realty News Of State

Realty Talk's