CREDAI Response to the mid term review of RBI Policy Rates
Express the need to provide more project funding by banks to the real estate sector to propel growth
The Confederation of Real Estate Developers’ Associations of India (CREDAI) the apex body for private real estate developers in India welcomes Reserve Bank of Indias (RBI’s) decision not to increase the interest rates.
Today’s urgent need is an overall economic growth. The high interest rates are crippling the growth and need to be reduced.
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| C Shekar Reddy, President, CREDAI National |
Speaking on the development Mr. C Shekar Reddy President CREDAI- National said," The Indian real estate sector with lower interest rates coupled with higher bank funding can trigger rapid economic growth as the sector offers high demand – supply linkages with over 300 industries such as cement, steel, paint etc. and also provide the employment next only to agriculture.”
Mr. Reddy urged the RBI “To increase the share of funding to the real estate sector which is currently as a low of 3 % to the Developers and 9 % to the home buyers. This 12 % funding to the sector is quite meager and should be raised to 15 % to the Developer and an overall of 24 % which will be comparable to 32 % in USA and 22 % in China. The housing sector is poised to grow manifold in the next decade & a half and will require a capital investment of about $ 1.2 Trillion. RBI should liberalize the norms and also lower the interest rates so that this sector with the high multiplier effect can propel the economy to the double digit Gross Domestic Production (GDP) growth and accelerated capital formation not only in this sector but also in all the associated supply industries.”
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 142 cities and 22 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.
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