RBI move positive: realtors

  Lauding the move by Reserve Bank of India (RBI) to cut cash reserve ratio (CRR) by 50 basis points, real estate developers on Tuesday said it was a positive step in the right direction and would help improve liquidity position of various sectors, including realty.

Stating that time had come to bring down interest rates to boost housing demand, they said the CRR cut would bring in liquidity and help the real estate market which is cash starved. “It is important to see the interest rate shall have to come down to facilitate the home seekers to buy homes,” Confederation of Real Estate Developers' Association of India (CREDAI) President Lalit Kumar Jain said in a statement here.

Unitech Managing Director Ajay Chandra said the reduction in the CRR was a positive move from the RBI as it would increase the credit-supply to different sectors of the economy.

CREDAI Chairman, who is also Chairman of Parsvnath Developers, Pradeep Jain said the apex bank had given a signal that interest rates would come down. “For the real estate sector in particular, this will serve as a signal that interest rates will now ease. Buyers may opt for floating rate loans at this juncture since the signal is clear. Also, the rising input cost will not leave any space for reduction of price,” he added.He said the RBI had attempted to do a delicate balancing act between the need for growth and urgency of containing price line.