Realtors Support RBI Rate Cut

March 5, 2009	(Be the first to rate this story!)  Loading ...
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Real estate sector, which is facing a slump in demand, on Wednesday hailed rates cut by the Reserve Bank, saying the move would help in easing the credit flow for developers and benefit home buyers, as interest on home loans is expected to come down further. Reacting to the rates cut, country’s largest real estate firm DLF Group Executive Director Rajeev Talwar said: “It’s a very good decision. This will benefit the entire industry and not only real estate. Liquidity will increase and interest on home loans is also expected to come down.” Leading real estate consultant Jones Lang LaSalle Meghraj Country Head Anuj Puri said all this positivity is needed to improve the sale volume in real estate.

Parsvnath Developers Chairman Pradeep Jain said: “It’s a good move to cut the rates. With this liquidity will increase. I expect that banks will reduce interest rates for borrowers, which will benefit both realty sector as well as home buyers.” He said the financial institutions should “lend money to borrowers instead of investing in government securities”. The Reserve Bank on Wednesday cut its key overnight lending and borrowing rates by 50 basis points each with immediate effect. Hailing the RBI decision, Unitech Managing Director Sanjay Chandra said, “It’s a welcome move and would help in easing the much required liquidity to the market. It also shows that the government is committed to stimulate the market through various possible measures.” Chairman and Managing Director of global property consultant CB Richard Ellis (South Asia) Anshuman Magazine said, “This (rate cuts) was expected. We have to make money available at lower costs…this move is in the right direction.”

If interest rates on home loans fall, then it would be good for home buyers as housing prices have started to rationalise, he added. Assotech Managing Director Sanjeev Srivastava said the decision would result in lower borrowing cost for the industry as well as leave more money with the consumers to spend on housing, automobiles and other requirements. Raheja Developers Managing Director Naveen Raheja said, “The banks are not passing the corresponding benefits to the industry. Unless the banks do it, this will not translate in real tangible benefit to the economy as well as the real estate sector.”

News Published Under:   Home Loans |

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