NEW DELHI: Reducing home loan rates to 8-9% can improve buyer sentiment and trigger a recovery in the housing sector, Getamber Anand, the newly elected president of industry body Confederation of Real Estate Developers Association of India (CREDAI), has said.
"Single-digit home loan rates coupled with the festive season will surely bring fence-sitters to the market and boost housing demand from October this year," Anand said on Tuesday.
Anand pointed out that the effect of RBI's rate cuts earlier have not been felt in the industry as benefits have not been passed on to home buyers. RBI governor Raghuram Rajan had cut key policy rates in January and March this year, but in Tuesday's policy review, he kept interest rates on hold.
Anand also expressed concerns on the real estate regulatory Bill, highlighting two major clauses troubling the developer community. "The regulator can arbitrarily cancel the licence of a developer according to the present Bill, which is not acceptable," he said. "Also, municipal authorities should be bought under the ambit of the real estate regulator."
CREDAI is also working aggressively on improving the image of the real estate sector as a whole by promoting self-regulation. "We are also encouraging members to have leaner and more efficient ways of construction so that there are no project delays. The focus of the members should be on timely completion," Anand said.
The real estate developers' body has elected Irfan Razack, the chairman and managing director of Prestige Group, as its new chairman, and Anand, chairman and managing director of ATS Infrastructure, as its new president for FY 2015-17.