Categories: Press Release

Monetary Policy: Realty sector unhappy

CREDAI chief calls for govt intervention for low-cost funding

Mumbai, December 2014

Real estate players and industry watchers say an interest rate cut could have triggered housing sales. The Reserve Bank of India on Tuesday left its benchmark rate unchanged saying it still needs more proof that inflation is under control before it can start lowering lending rates.

Pradeep Jain, Chairman, Parsvnath Developers said, “RBI should understand that curbing inflation at the cost of growth is not a wise step. It should stand up and cut the rates in its next review to pump fund into the economy, and the real estate sector in particular, which is one of the major contributors to the GDP.”

Lost opportunity

Anshuman Magazine, Chairman and MD, CBRE South Asia said, “For the real estate industry, the move may be seen as a lost opportunity. A rate cut at this juncture could have been the trigger for housing sales.”

Expressing disappointment at the RBI’s monetary policy, CREDAI Chief Lalit Kumar Jain, has called for government intervention to facilitate low-cost funding for real estate developers and buyers.

“For a long time the RBI has been consistently taking steps that do not encourage real estate sector despite the well recognised fact that the industry contributes handsomely to the country’s GDP,” he said.

Samantak Das, Chief Economist and Director, Research, Knight Frank India said, “With the recent sales in the real estate sector remaining subdued, stakeholders were hoping for a rate cut to initiate tractions in the market. However, given the current scenario of high optimism along with economic fundamentals falling in place, the RBI may look at testing the sustainability of the economic progress for one more quarter.” Business Line

The Property Times News Bureau

Recent Posts

From Urban Jungles to Digital Oasis: The Millennial Shift Toward Hyper-Connected Homes

New Delhi, November 14, 2024: In the past decade, urban spaces across the country have…

9 hours ago

ALBAN by Pyramid Infratech emerges as a preferred choice of discerning homebuyers

Gurugram, November 14, 2024: ALBAN, by Pyramid Infratech, is a marquee project located in sector-71, Gurugram.…

9 hours ago

India Accelerator Enters Pune with New Co-working Space; invests $0.5 Million to Foster Startup Innovation

As IA continues to move on its expansion spree, it is poised to meet the…

1 day ago

Trehan Group plans to come up with New Group Housing Project in Bhiwadi

 The group Aims to Deliver Quality and Affordable Housing Along Bhiwadi-Alwar Highway New Delhi, November…

1 day ago

Build Nivesh LLP (formerly Labdhi Nivesh LLP) Announces Final Closure of Maiden Real Estate AIF

Mumbai, November 12, 2024: Build Nivesh LLP (formerly known as 'Labdhi Nivesh LLP'), has announced final…

2 days ago

Rs 361+ Crore Diwali Sales Mark Growing Buyer Interest in Mumbai and Pune Real Estate

With 243 units sold over 1.60 lakh sq. ft. carpet area, The Guardians Real Estate…

2 days ago