The real estate India may soon change its trend. This assumption is being made after the recent announcements made by Reserve Bank of India.
With the latest round of interest rate cuts along with the government’s fiscal stimulus package, a rise will be seen to buy property in India. But the industry officials think otherwise. They contradict by the statement that these steps may not be enough to revive the market. The real estate developers say these steps do not talk about the realty sector's main trouble of credit flow.
The RBI has reduced repo and reverse repo rate by one percentage point and banks’ cash reserve ratio (CRR) by 50 basis points, which will further enhance liquidity in the system and make the lending process to property buyers and real estate developers less costly and easy. All this may increase the demand for homes.
Real estate developers were hoping for a raise on the limit of lending of home loans of Rs.30 lac from Rs.20 lac; and raising the exemption limit for tax benefits on interest paid on home loans to Rs.3 lac from Rs.1.5 lac.
A slow down has been seen in the real estate sector since the beginning of last year. Sales had fallen fallen drastically in the last quarter. This had an effect on the cash flows of the real estate developers and thereal estate companies. The unavailability of bank credit and funds from private equity squeezed them further. Most of them were forced to delay projects and lay off employees.
For know about the real estate company visit http://www.jaaydaad.com
With the latest round of interest rate cuts along with the government’s fiscal stimulus package, a rise will be seen to buy property in India. But the industry officials think otherwise. They contradict by the statement that these steps may not be enough to revive the market. The real estate developers say these steps do not talk about the realty sector's main trouble of credit flow.
The RBI has reduced repo and reverse repo rate by one percentage point and banks’ cash reserve ratio (CRR) by 50 basis points, which will further enhance liquidity in the system and make the lending process to property buyers and real estate developers less costly and easy. All this may increase the demand for homes.
Real estate developers were hoping for a raise on the limit of lending of home loans of Rs.30 lac from Rs.20 lac; and raising the exemption limit for tax benefits on interest paid on home loans to Rs.3 lac from Rs.1.5 lac.
A slow down has been seen in the real estate sector since the beginning of last year. Sales had fallen fallen drastically in the last quarter. This had an effect on the cash flows of the real estate developers and thereal estate companies. The unavailability of bank credit and funds from private equity squeezed them further. Most of them were forced to delay projects and lay off employees.
For know about the real estate company visit http://www.jaaydaad.com
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