The real estate sector has welcomed the CRR rate cut by the RBI and said it will help revive demand in the housing segment. Industry body Confederation of Real Estate Developers’ Associations of India (CREDAI) has called it a step towards bringing in liquidity in the sector.
“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 that shall has to come down to facilitate the home seekers to buy homes,” said Lalit Kumar Jain, National President CREDAI & CMD of Kumar Urban development.
CREDAI said the policy actions are expected to improve liquidity in the system and anchor medium-term inflation expectations.
“We are happy that the RBI has taken cognizance of the plight of the productive sector and has lowered the CRR by 50 base points. This move will help to curb the negative sentiments in the economy to some extent in general and real estate sector in particular,” Gaurav Mittal, governing council member of CREDAI & MD of CHD Developers, said.
“However, this is just an indication that the sequence of rate rise is now behind us. What we will need now is consolidation of government finances so that funds are available for the private sector,” Mittal added.
Manoj Paliwal, CFO, Omkar Realtors & Developers said, “0.50% reduction in CRR announced by RBI is a step in right direction although too less and a bit late. We do not foresee any immediate impact on the interest rate which is disappointing as Real Estate is top notch priority for the common man. Therefore, liquidity for real estate companies will improve only after other sectors have got sufficient funding.”
Deepak Shah, MD, Sumer Infrastructure said, “This is an encouraging sign for all industries, businesses and hence, the overall economy. We can expect more such steps in the future from the central bank. This will reduce the interest rates on lendings and home loans. It will not only improve liquidity for the industries resulting into better production and GDP growth but it will also push demand for housing and other goods. The reduction in rate was anticipated and it has come as a nice New Year gift from RBI. We hope that this trend continues in this calendar year fostering the India growth story.”
Kamal Khetan, MD, Sunteck Realty said, “The cut of 50 basis point will surely bring liquidity in the market. The move will tame inflation and act as a stimulus to growth. For the real estate industry, there won’t be immediate effect on borrowing however we could expect a reduction of interest rates in the months ahead.”
