New Delhi: Welcoming the RBI decision to cut key policy rates by 0.25
per cent, the real estate sector on Friday said there is a need for
further reduction so that the interest cost to builders and home buyers
falls considerably.
"We sincerely hope that the RBI will keep up the trend of repo rate cut and facilitate a fall in interest rates so that EMI burden on common house buyer gets reduced considerably," Confederation of Real Estate Developers' Associations of India (CREDAI) Chairman Lalit Kumar Jain said in a statement.
The Reserve Bank today cut the short-term lending rate, or repo, by just 0.25 per cent to 7.25 per cent and kept the liquidity enhancing cash reserve requirement unchanged.
Country's largest realty firm DLF said that the rate cut was "too little" to boost realty sector as well as economy.
Commenting on the policy, DLF Group Executive Director Rajeev Talwar said: "The rate cut is too little to give economy a boost. There is a need for further reduction".
However, he said that if the banks and housing finance companies pass on the rate cut to consumers, it would have a positive impact on the sector.
Echoing similar views, Royal Institution of Chartered Surveyors (RICS) South Asia Managing Director Sachin Sandhir, welcomed the rate cut by the RBI. However, he said the realty sector requires more such incentives.
"To revive investments in the sector, we hope the apex bank would continue monetary easing in the coming months and would further reduce the rates," Sandhir said.
Assotech Managing Director Sanjeev Srivastva termed the repo rate cut as "a good move" and hoped that the rate cut would be passed on to consumers by financial institutions.
"It will boost the situation of recent sluggishness in investment activity and domestic sentiments because interest rate is an important component in driving the economy. It is although small in percentage but a good sentiment booster," Srivastva said.
CREDAI stressed the need for the RBI formulating a special policy for the housing industry with focus on affordable housing. It urged RBI to remove negative weightage given to the real estate industry so that the commercial banks took a pragmatic and practical view of housing sector.
"We sincerely hope that the RBI will keep up the trend of repo rate cut and facilitate a fall in interest rates so that EMI burden on common house buyer gets reduced considerably," Confederation of Real Estate Developers' Associations of India (CREDAI) Chairman Lalit Kumar Jain said in a statement.
The Reserve Bank today cut the short-term lending rate, or repo, by just 0.25 per cent to 7.25 per cent and kept the liquidity enhancing cash reserve requirement unchanged.
Country's largest realty firm DLF said that the rate cut was "too little" to boost realty sector as well as economy.
Commenting on the policy, DLF Group Executive Director Rajeev Talwar said: "The rate cut is too little to give economy a boost. There is a need for further reduction".
However, he said that if the banks and housing finance companies pass on the rate cut to consumers, it would have a positive impact on the sector.
Echoing similar views, Royal Institution of Chartered Surveyors (RICS) South Asia Managing Director Sachin Sandhir, welcomed the rate cut by the RBI. However, he said the realty sector requires more such incentives.
"To revive investments in the sector, we hope the apex bank would continue monetary easing in the coming months and would further reduce the rates," Sandhir said.
Assotech Managing Director Sanjeev Srivastva termed the repo rate cut as "a good move" and hoped that the rate cut would be passed on to consumers by financial institutions.
"It will boost the situation of recent sluggishness in investment activity and domestic sentiments because interest rate is an important component in driving the economy. It is although small in percentage but a good sentiment booster," Srivastva said.
CREDAI stressed the need for the RBI formulating a special policy for the housing industry with focus on affordable housing. It urged RBI to remove negative weightage given to the real estate industry so that the commercial banks took a pragmatic and practical view of housing sector.
FICCI welcomes rate cut
FICCI welcomed RBI’s decision to
continue its stance of accommodating monetary policy, giving the much desired
support to the industrial growth and the hope of spurring investment activity.
"FICCI feels that the 75 basis
points decline in the repo rate so far this year will be instrumental in
reviving the confidence of the industry”, said Naina Lal Kidwai, President of FICCI.
FICCI hopes that this will result in
a commensurate decline in lending rates. While the repo rate have been brought
down by 125 bps between April 2012 and May 2013, the lending rates have not
come down. The base rate as on April 19, 2013 was 9.70/10.25 vis-à-vis
10.00/10.75 last year.
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