CREDAI hails consistency in rate reduction

Hailing the repo rate cut by 25 basis points, realtors’ apex body CREDAI today called for continuing the trend by the Reserve Bank of India to pave way for easy financing of the housing industry.

“We sincerely hope that the RBI will keep up the trend of repo rate cut and facilitate a fall in interest rates so that the EMI burden on common house buyer gets reduced considerably,” said Mr. Lalit Kumar Jain Chairman of CREDAI & CMD Kumar Urban Development Ltd.

CREDAI – Confederation of Real Estate Developers’ Associations of India – has over 10,000 members across 20 cities, pan-India.

Mr Jain also stressed the need for the RBI formulating a special policy for the housing industry with focus on affordable housing and quick and equally affordable financing of such projects.

Pointing out that the governments at the Centre as well the States have all been proclaiming that they are committed to affordable housing, Mr Jain said RBI should also play its part by scrapping the negative weightage given to the real estate industry so that the commercial banks took a pragmatic and practical view of housing sector.

CREDAI National President Mr. C Shekar Reddy said: “we seek indulgence of RBI and Finance Ministry to stimulate supply and demand in the Housing Sector”.

He appreciated the Finance Ministry’s initiatives to encourage financing of projects held up for want of funds and said: It is time for all of to move further and look at the real estate industry as a whole.”

Referring to the RBI concern over supply chain constraints, Mr. Reddy said real estate industry could contribute to improvement of the situation as over 200 industries can have the benefit of a chain reaction.

He reiterated the CREDAI demand for a supply-driven economy rather than a supply-constrained policy.