The RBI, on Tuesday, July 31, kept the repo rate or the rate at which banks borrow from RBI unchanged at 8% and also the reverse repo rate at which, the banks lend to RBI unchanged at 7%. However, it has lowered the statutory liquidity ratio (SLR) to 23% from 24% earlier. The realty sector, reeling under liquidity pressure and low demand due to high interest rate, has reacted sharply over this status quo.
The much-awaited regulatory Bill for the real estate sector will not be tabled during the current session of Parliament, a senior official in the Ministry of Housing and Urban Poverty Alleviation has confirmed to Track2Realty. The draft Real Estate Regulation Bill is still in the consultative process and the government is apprehensive that the states may block it the NCTC way.
The much awaited verdict of the Competition Commission of India (CCI) on real estate developers’ complaint against cartelisation among cement companies is expected next week.
The real estate sector has welcomed the CRR rate cut by the RBI and said it will help revive demand in the housing segment.
Real estate developers have sought inclusion of “force majeure” provisions in the proposed real estate bill drafted by the Central Government.
EMAAR MGF has bagged the “Prashansa Patra” award 2010 from the National Safety Council of India for its Boulder Hills, Excelsior Residential Project, a 7 acre high-rise project in Hyderabad.
The real estate sector has expressed guarded optimism on Supreme Court ruling that terms as “illegal” any sale of immoveable property through power of attorney (POA) unless the case is “genuine”.
The level of FDI in the real estate sector is unlikely to show a quantum jump this year, courtesy a slow GDP growth rate, high debt levels of the real estate developers, labour shortage and economic crisis in the US and Europe.
Reeling under high input costs and 40 per cent labour shortage, the realty sector in Gujarat is witnessing construction projects getting either delayed, cancelled or halted in progress.
The ruling of Competition Commission of India (CCI) against the market leader DLF seems to have not only sparked a debate within the real sector, but has also united them.