Real Estate companies are hoping the era of rising interest rates is behind India.
High interest rates have pushed up EMIs of home loans and prevented people from taking on fresh loans. Real Estate companies are now sitting on inventory worth 4-5 years of sales in big cities like Mumbai and Delhi.
“We hope the era of interest rate hikes has ended,” said developers apex body CREDAI Chairman Mr Lalit Kumar Jain.
Commenting on the Reserve Bank’s decision not to hike the repo rate, Mr Jain, who is also the Chairman and Managing Director of Mumbai-Pune developer Kumar Urban development Limited (KUL), said: “We hope that the RBI will now look for a consistent decrease in repo rates in the near future.”
“This will have a positive impact on the growth of real estate industry which will give a boost to the GDP growth,” he said.
He recalled that the real estate, which contributes handsomely to the country’s GDP, have been at a standstill due to the RBI’s negative weightage to the industry and the high interest regime that is not helpful to either the developer or the home buyer.
“CREDAI reiterates its request to the RBI Governor to take a pragmatic and practical view of the growth of the real estate industry to help revive the economy and give a boost to the supply side to check price rise,” he said.
The statement of RBI GOVERNOR predicting consistent fall in CPI is a big reassurance, he added.