NEW DELHI: Realtor's body CREDAI today said the government's policy paralysis has severely impacted the real estate sector which is facing stagnation in growth.
"The economy is in a bad shape and there is an all round despair. We have been witnessing a widespread criticism -- in India and abroad -- and policy paralysis has impacted the real estate industry in a big way," CREDAI National President Lalit Kumar Jain said in a statement.
Jain said the government needs to appreciate the fact that realty sector supports over 250 other industries, contributes 11 per cent to GDP and is the largest employment generator after agriculture.
CREDAI, the apex body of real estate developers from across the country, has convened its governing council meeting in Delhi tomorrow to take stock of the housing scenario in the country, the statement said.
The meeting assumes significance in view of the fact that real estate has been experiencing stagnation in its growth despite the housing shortage touching 26 million, it added.
Jain said the CREDAI's governing council would chalk out a plan and then announce it.
Real estate sector is witnessing slowdown in demand due to high interest rates on home loans since last couple of years and economic slowdown in global as well as domestic market.
Almost all the developers have reported decline in net profit from last several quarters.