 |
 |
-
Real Estate India
-
Explore Inside Pages
-
News by Month
- January 2009
- December 2008
- November 2008
- October 2008
- September 2008
- August 2008
- July 2008
- June 2008
- May 2008
- April 2008
- March 2008
- February 2008
- January 2008
- December 2007
- November 2007
- October 2007
- September 2007
- August 2007
- July 2007
- June 2007
- May 2007
- April 2007
- March 2007
- February 2007
- January 2007
- December 2006
- November 2006
- October 2006
- September 2006
PLR cut From Developers Point of View
| November 7, 2008 |  (Be the first to rate this story!) Loading ... |
Most public sector banks have cut their benchmark prime lending rates (PLR) by upto 75 bps. One fraternity cheering the prime lending rate (PLR) rate cut is the real estate developers, but the question is will this be enough to bail out the bleeding sector? Real estate developers are upbeat about the prime lending rate (PLR) rate cut though they feel the sector is in need of more such continuous measures to get back on their feet.
Real estate developers are upbeat about the prime lending rate (PLR) rate cut though they feel the sector is in need of continuous measures such as this to get back on their feet. The current lending rates are in the range of 15 to 16%, it was about 11% last year. There have been news of several projects being delayed in recent times and this PLR cut will ease that considerably because banks typically fund construction cost which has risen to the tune of 20% from last year.
Unitech said, “It is an excellent move which should move housing demand as mortgage rates are coming down. Also, risk weightage for real estate by banks should be brought at par with manufacturing.” Pradeep Jain, MD, Parsvnath Developers said “We expect a much higher than 0.75% to be reduced in the rate of interest lending to companies, and at the same time we are expecting a reduction in the home mortgage rate of interest also.”
Ashish Puravankara, Director, Puravankara Projects said “I think a lot more needs to be done, the sooner the better. Till now we have not really seen any rates going down. So, for it to really affect the end consumer or retail borrower, a further reduction in rates needs to be done.” So developers are still waiting for a direct home loan rate cut that they believe will revive sales. This year leading companies have seen a sales dip of 40%. Certain developers have even stated off the record that they have not had a single-sale transaction in six-months.
News Published Under: Real Estate Developers |
|
Add to Favourite:
:
|
Related News:
