Realty Players Seek More Monetary Measures

Realty Players Seek More Monetary MeasuresIndian real estate firms demanded more monetary measures by government to increase demand in reality sector. Developers urged government to restructure debt and cut in interest rates to push growth rate of home segment. A team of reality firms, headed by National Real Estate development Council (NAREDCO) President, Rohtas Goel met Planning Commission Deputy Chairman, Montek Singh Ahluwalia and apprised him about the demands of developers.

NAREDCO chief, Rohtas Goel said that government should revise upper limit of home loan from 20 lakh to Rs 30 lakh. He also asked to cut interest rate for home loan to boost demand in housing sector. NAREDCO suggested interest rate of 6.5 percent for loans up to Rs 5 lakh, 7.5 percent for loans up to Rs 30 lakh and 9.5 percent for loan above 30 lakh.

The developers denied cutting prices from the present levels, saying that they are catering income group of over Rs 10 lakh per annum. This group can afford flat worth Rs 30-40 lakh very easily at appropriate interest rates.

The Deputy Chairman of Planning Commission, Montek Singh Ahluwalia said, "We have heard to one representative group, that is CREDAI. There is another major group, which wanted to make a presentation. We had a very good meeting." He promised to forward the suggestions of builders to Prime Minister Manmohan Singh who currently holds additional charge of finance portfolio.

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