Realtors Unhappy Over Status Quo in RBI Monetary Policy
There is a need to devise a formula to make home loan rates independent of inflation, keeping in view the mission to provide housing for all by 2022, CREDAI said
Oct 01, 2014
Source : profit.ndtv.com
Credai

 

New Delhi: The Confederation of Real Estate Developers' Associations of India (CREDAI), the apex body of realtors in the country, expressed disappointment on Tuesday over the Reserve Bank's policy to keep key rates unchanged as it sought a cut in interest rates to boost housing demand.

"The Confederation of Real Estate Developers' Associations of India is disappointed with the status quo on the RBI policy rates and demands a reduction in interest rates to facilitate lowering of entry barrier and spur demand for the real estate sector," the organisation said in a statement.

There is a need to devise a formula to make home loan rates independent of inflation, keeping in view the mission to provide housing for all by 2022 and exponential impact of the realty sector on triggering the GDP growth, CREDAI said.

"The real estate sector has been dabbling with high cost of land, labour, material, funds & high rates of taxation along with the moderate demand over the last few months. The industry was looking forward to a reduction in interest rates and improved liquidity to usher growth and development," CREDAI president C Shekar Reddy said.

For the fourth time in a row, the apex bank kept key interest rates unchanged on Tuesday, maintaining that it will not cut them unless inflation moderates to anticipated levels, disappointing borrowers and the industry in this festive season.

"The RBI's move of keeping base rates unchanged was expected by the industry," CBRE South Asia chairman and managing director Anshuman Magazine said.

"Gradually weakening inflationary pressures, along with improving performances by the manufacturing, construction and services sectors have been encouraging signs for further economic improvement by the second half of the year. Any reduction in base rates in coming months will be a positive indicator for the real estate sector," he added.

The real estate sector is facing a huge slowdown in demand, particularly in housing segment, since last few years due to high interest rate on home loans and rising property cost.

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
Cut Home Loan Interest: Credai
Oct 01, 2014
The Confederation of Real Estate Developers’ Associations of India has appealed to the Reserve Bank of India to reduce the home loan interest rates
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
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