With the Reserve Bank of India maintaining its status quo with regards to key interest rates at a time when the country’s inflation is well under control, the Confederation of Real Estate Developers’ Association of India (CREDAI) has strongly expressed its dismay and opined that it could have been much better if the bank reviewed the situation in an open manner.
Representing the interest of the country’s real estate sector, CREDAI has opined that RBI should work towards facilitating a reduction in interest rates in order to drive lowering of entry barriers and increase demand for real estate within the country.
CREDAI is arguing that as of now, India is experiencing a much more favorable financial atmosphere and hence the RBI’s decision to keep the key rates unchanged will not help the real estate sector development. This becomes especially important when the sector is going through a tough time.
At present, the overall inflation is under control, the country is experiencing a lower price points on crude oil and hence in order to facilitate the growth of the sector, RBI should seriously get involved in lowering the interest rates and that should provide the much needed momentum for businesses to grow ahead.
As believed by experts, the Indian economy is now moving in the right direction and hence, the organizations such as RBI should go all out and provide the right platform for future growth.
As for the real estate industry, the move may be seen as a lost opportunity as a rate cut at this juncture could have been the trigger for housing sales, Magazine said.