New Delhi, March 04: Real estate sector, which is
facing a slump in demand, on Wednesday hailed rates cut by the
Reserve Bank, saying the move would help in easing the credit
flow for developers and benefit home buyers, as interest on
home loans is expected to come down further.
Reacting to the rates cut, country's largest real estate
firm DLF Group Executive Director Rajeev Talwar said: "It's a
very good decision. This will benefit the entire industry and
not only real estate. Liquidity will increase and interest on
home loans is also expected to come down."
Leading real estate consultant Jones Lang LaSalle Meghraj
Country Head Anuj Puri said all this positivity is needed to
improve the sale volume in real estate.
Parsvnath Developers Chairman Pradeep Jain said: "It's a
good move to cut the rates. With this liquidity will increase.
I expect that banks will reduce interest rates for borrowers,
which will benefit both realty sector as well as home buyers."
He said the financial institutions should "lend money to
borrowers instead of investing in government securities".
The Reserve Bank on Wednesday cut its key overnight lending and
borrowing rates by 50 basis points each with immediate effect.
Hailing the RBI decision, Unitech Managing Director
Sanjay Chandra said, "It's a welcome move and would help in
easing the much required liquidity to the market. It also
shows that the government is committed to stimulate the market
through various possible measures."
Chairman and Managing Director of global property
consultant CB Richard Ellis (South Asia) Anshuman Magazine
said, "This (rate cuts) was expected. We have to make money
available at lower costs...this move is in the right
If interest rates on home loans fall, then it would be
good for home buyers as housing prices have started to
rationalise, he added.
Assotech Managing Director Sanjeev Srivastava said the
decision would result in lower borrowing cost for the industry
as well as leave more money with the consumers to spend on
housing, automobiles and other requirements.
Raheja Developers Managing Director Naveen Raheja said,
"The banks are not passing the corresponding benefits to the
industry. Unless the banks do it, this will not translate in
real tangible benefit to the economy as well as the real
First Published: Wednesday, March 04, 2009, 00:00