Realty developers to meet RBI Governor for more sops

Representatives from the Confederation of Real Estate Developers Association of India (CREDAI) will be meeting the RBI Governor D Subbarao next week to demand more government sops for the struggling real estate sector. The developers are likely to push for lower interest rates and restructured debt for the developers.

Speaking to The Indian Express, Pradeep Jain, Chairman, Parsvnath Developers said, “We will approach the RBI to demand a restructuring of existing debt by way of Financial Institutions (FIs) granting a minimum moratorium period of 12 months. Beyond 12 months, terms and conditions will be up to FIs. Also, the recently reduced interest rates for home loan borrowers upto Rs 20 lakh should be increased to Rs 30 lakh for customers in metros only. In addition, the home loan mortgage interest rate still needs to fall below 10 per cent.” The real estate sector continues to demand relief even as the new stimulus package allows developers of integrated townships to borrow funds from overseas and asks states to release land for low and middle-income housing schemes. However, the industry believes that liquidity should improve as a result of these measures.

“Developers can also use this extra liquidity for existing projects which are on a halt because of paucity of funds. Overall, this will boost real estate and infrastructure while increasing demand and keeping pace with supply,” said Omaxe MD, Rohtas Goel. Navin Raheja, Managing Director, Raheja Developers echoed the view. “If banks follow the repo rate cuts announced today and reduce lending rates by even a per cent, the real estate sector will receive a much desired boost,” he said.