Indian’s apex bank, RBI’s decision to cut cash reserve ratio (CRR) will help improve the liquidity position of various sectors, including realty, but realtors feel that interest rates should be brought down to boost housing demand.
Lalit Kumar Jai, President of Confederation of Real Estate Developers’ Association of India (CREDAI) said, “The CRR cut will bring in liquidity. It will help the real estate market which is cash starved. However, it is important to see the interest rate shall have to come down to facilitate the home seekers to buy homes.
In its third quarterly review of the monetary policy, RBI on Tuesday injected Rs 32,000 crore into the system by lowering the CRR by 50 basis point but kept the short-term lending rate unchanged in view of persisting inflationary concerns.
Echoing the view, Unitech Managing Director Ajay Chandra said: “A reduction in the CRR is a positive move from the RBI as it will increase the credit-supply to different sectors of the economy.”
Chandra noted that an increase in the credit supply would also benefit the realty sector.
CREDAI Chairman Pradeep Jain said the apex bank has given a signal that interest rates would come down.
Credai Chairman said that RBI has attempted to do a delicate balancing act between the need for growth and urgency of containing price line.
CHD Developers Managing Director Gaurav , said “This is just an indication that the sequence of rate rise is now behind us, the signal will serve as a boost for the real estate sector with sentiments of buyers turning favorable. This move is set to help stimulate growth.”
Source – PTI
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