CREDAI demands reduction in home loan rates

CREDAI demands reduction in home loan rates to trigger demand for Real Estate Industry

Emphasizes on the immediate need for infrastructure status and flexible approach towards project funding

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, which has been completely ignored by the successive governments.

Speaking on the development Mr. C Shekar Reddy, President CREDAI National said, “We at CREDAI appreciate the positive step taken by RBI to reduce SLR by 50 bps, which will release a liquidity of Rs.39000 Cr for the banks. We understand the central bank’s Priority to fight inflation and to bring it down, however at the same time Real Estate industry also awaits proactive measures to stimulate the home purchase by bringing down the home loan rate. We hope to see reduction in rates going forward.”  

Mr. C Shekar Reddy,
President CREDAI National

He further added that “During the recent meeting with Shri Venkaiah Naidu, Honorable minister for urban development, housing and urban poverty alleviation, we sought support in awarding the infrastructure status to affordable housing, providing added incentives and tax reduction to the industry and home buyers, besides easing the norms for FDI in real estate sector. We also requested him to take proactive steps to reduce the home loan rate to 7-7.5% to stimulate the demand for housing and fuelling economic growth and job creation. To fulfill the requirement of pucca housing for all which requires about 30 million dwelling units by 2022, we hope the government and RBI work in tandem with policies to support growth and cheaper funding to the sector. ”

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.

Warm regards,

Nishanth

M: 98840 70861

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