Express the need to provide priority sector
status to affordable housing project funding
Note: Please also find the attached
photograph of Mr. C Shekar Reddy President CREDAI- National
The Confederation of Real Estate Developers’
Associations of India (CREDAI) the apex body for private real estate developers
in India expressed their concern over the RBI (Reserve Bank of India) decision
to increase the repo rates by 0.25% in the second-quarter monetary policy
review.
The step is only aimed at its
inflation-fighting credentials despite the country's sputtering economic growth
and weak investment demand.
Speaking on the development Mr. C Shekar
Reddy President CREDAI - National said," Considering the overall economic
situation and challenges being faced by the industry, we were looking forward to the reduction in
repo rates, to ease the burden on the buyers and developers. The continuation
of the policy to increase in repo rates in the monetary policy, to control the
inflation, will be further increasing the problems of the developers who are
grappling with high interest rates. We
were hopeful that besides easing the liquidity, RBI will start addressing the
industry concerns for growth and give the necessary impetus.”
He further added “Housing has long been
identified as a social priority next only to food and clothing. According to
Housing and Urban Poverty Alleviation (HUPA) estimates present housing shortage
is 18.7 million units with almost 96 % shortage in the shelter for Economically
Weaker Section (EWS) & Lower Income Group (LIG). There is an expected total
housing requirement of 60 million units
by 2030 in India. Keeping in view the demand supply gap in the affordable
housing segment, Government needs to support the sector by focusing on
development initiatives like
recognizing affordable housing as a priority sector for funding and providing
added incentive to the lenders, developers and the economy at large.
RBI should consider increasing the exposure to Commercial Real Estate (CRE)
segment from 3% to at least 12% and encourage the funding of SME projects in
tier I, tier II and tier III towns and cities to boost the segment. Such
initiatives will facilitate the flow of formal credit to the sector and encourage the developers to take up more
projects in the affordable housing segment. We are keen on meeting the RBI
Governor to table and discuss the concerns of the Real Estate sector.”
About CREDAI: the Voice of India’s Real
Estate Industry
The Confederation of Real Estate Developers’
Associations of India (CREDAI) is the apex body for private real estate developers
in India. CREDAI represents over 9,000 developers through 134 cities and 20
state/city level member associations across the country. Its numerous
initiatives and activities help developers come together and work towards
better practices, improved customer service and a stronger realty industry.
For more details contact: Amit Mishra:
9344075741 / Nishanth 9884070861
Emai: nishanth@konnections.co.in
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