Hyderabad, October 29th, 2013: 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 decision to increase the repo rates by 25 bps 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.
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