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    Builders unhappy with RBI policy; seek interest rate cut

    Synopsis

    Realty firms and property consultants today expressed disappointment over RBI's decision to keep key policy rate unchanged.

    NEW DELHI: Realty firms and property consultants today expressed disappointment over RBI's decision to keep key policy rate unchanged and said it was the right time to bring down the borrowing cost for home buyers as well as developers.

    "CREDAI has expressed strong disappointment at the RBI's latest credit policy. The Central Bank should shed its negative approach towards the real estate industry," the apex realtors' body said in a statement.

    Stating that the cost of funding for real estate is very high, CREDAI President Lalit Kumar Jain said the RBI should come out with a positive policy and facilitate reduction in interest rate.

    "We have been pointing out that the real estate industry is not only the 2nd largest employer in the country but also contributes handsomely to the GDP and growth of 400 other industries," he added.

    After the recent meetings with Finance Ministry officials, CREDAI had been hopeful that the government and the RBI would come out with "pragmatic policy", Jain said.

    Echoing similar views, CBRE South Asia Chairman and Managing Director Anshuman Magazine said: "The RBI's decision to keep the key policy rates unchanged once again is a disappointment for the real estate sector".

    "While a cut of 25 base points in the CRR rate does infuse some liquidity, a reduction in the repo rate would have helped boost investor sentiment. The festive season coupled with an expected change in policy rates would have been the ideal time for improving consumer confidence," Magazine said.
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    6 Comments on this Story

    musing2892 days ago
    The RBI is trying to bring relief to common man who is finding it difficult to buy food due to high inflation. And the builders are unhappy??!! They think their cost of borrowing has to come down??!! Shame on these builders!! Its time that these greedy vampires be pulled down from their high horses...
    Mahdav Kulkarni2892 days ago
    Main reasons that ordinary buyers not coming forward for purchase of property is not higher rates of interest but illogical property rates Builders should come forward and show positive attitude by reducing the prices by 10 to 15 % (in real terms and not like fake discount schemes announced by Saree shops). This will be win win situation both for buyers and builders. Needy Buyers will come forward to purchase, while builders will be benefited by reducing their inventory and reducing their loan.
    anna dmk2892 days ago
    in the last so many years there is only one important class that have not asked for anything from anyone and killing themselve is FARMERS class. but for them there is no one to raise voice. god help them.
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