CREDAI expresses happiness as RBI announces cut in repo rate

Hopes this will trigger a reduction in interest rates and increase demand for houses 

The Confederation of Real Estate Developers’ Associations of India (CREDAI) the apex body for private real estate developers in India expressed their happiness over the unexpected but long awaited move by RBI to reduce the repo rates by 25 bps ahead of the 6^th Bimonthly policy rate review on February 2015.

 

C Shekar Reddy, President CREDAI-National

 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 welcome the reduction in repo rates, which will ease the burden on the buyers and developers. The decision of RBI to cut the interest rates was long overdue in the environment of lower inflation and poor domestic demand. The home buyers were upbeat but in a wait and watch mode due to high prevailing interest rates. We are hopeful that with this interim announcement of rate cut the banks will take the cue and pass on the benefits to the end user which will trigger the demand and offtake of housing. We are hopeful that keeping in view the low inflation RBI will continue the change of stance in the monetary policy and addressthe 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. To further the efforts to meet the future requirement for housing we expect the government to announce the waited interest subvention scheme to further boost the RE demand and come out with the draft policy for the development of Smart Cities and special incentives to involve the private sector in the mission housing for all by 2022.”

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