The Confederation of Real Estate Developers’ Associations of India (CREDAI) the apex body for private real estate developers in India seeks a pro growth stance on the policy rates and demands a reduction in interest rates to put growth and demand on a fast track and develop the housing sector in the economy which has been completely ignored by the successive governments
Speaking on the development Mr. C Shekar Reddy President CREDAI- National said," The real estate sector has been dabbling with high input costs, high cost of funds and a moderate demand over the last few months. The sector has been ignored and needs immediate focus to build confidence. Now, with the wholesale price inflation at under 5% and retail inflation at around 8%, the growth stimulus should be injected into the economy with a reduction in repo rates to trigger lowering of home loan rates and lending rates for real estate projects. We are looking forward to a robust 2014 with a stable government at the centre and economic enablers to stimulate the growth.”
Mr. Reddy urged the RBI “According to the Ministry of Housing and Urban Poverty Alleviation (MoHUPA) estimates present housing shortage is 18.7 million units and total housing requirement expected to be 60 million units by 2030 in India. Government needs to support the sector by focusing on development initiatives like recognizing affordable housing as a priority sector for funding and providing added incentive to the lenders, developers and the economy at large. The RBI suggestion to Banks for allowing pre payment of floating terms loans without any penalty is a welcome step and should be implemented in the interest of the customer”
The housing sector is poised to grow manifold in the next decade and a half and will require a capital investment of about $1.2 Trillion. RBI should liberalize the norms, increase the lending to the real estate sector in line with the global exposure of 24-32% as compared to the present 12% and lower the interest rates so that this sector with the high multiplier effect can propel the economy to the double digit GDP growth leading to accelerated capital formation not only in this sector but also in all the associated supply industries.
Speaking on the development Mr. C Shekar Reddy President CREDAI- National said," The real estate sector has been dabbling with high input costs, high cost of funds and a moderate demand over the last few months. The sector has been ignored and needs immediate focus to build confidence. Now, with the wholesale price inflation at under 5% and retail inflation at around 8%, the growth stimulus should be injected into the economy with a reduction in repo rates to trigger lowering of home loan rates and lending rates for real estate projects. We are looking forward to a robust 2014 with a stable government at the centre and economic enablers to stimulate the growth.”
Mr. Reddy urged the RBI “According to the Ministry of Housing and Urban Poverty Alleviation (MoHUPA) estimates present housing shortage is 18.7 million units and total housing requirement expected to be 60 million units by 2030 in India. Government needs to support the sector by focusing on development initiatives like recognizing affordable housing as a priority sector for funding and providing added incentive to the lenders, developers and the economy at large. The RBI suggestion to Banks for allowing pre payment of floating terms loans without any penalty is a welcome step and should be implemented in the interest of the customer”
The housing sector is poised to grow manifold in the next decade and a half and will require a capital investment of about $1.2 Trillion. RBI should liberalize the norms, increase the lending to the real estate sector in line with the global exposure of 24-32% as compared to the present 12% and lower the interest rates so that this sector with the high multiplier effect can propel the economy to the double digit GDP growth leading to accelerated capital formation not only in this sector but also in all the associated supply industries.
