RBI Governor Raghuram Rajan yesterday asked real estate developers
to reduce prices to encourage more people to buy properties.
Realtors’ apex body CREDAI today said there is no scope for further
reduction in housing prices as this would lead to rise in NPAs and
non-delivery of real estate projects.
“About 90 per cent of the real estate stock in the country has
already seen a correction of about 20-30 per cent. There is no
scope for further rate cut. Any further cut will lead to NPAs and
non-delivery of projects,” CREDAI (National) President Getamber
Anand told PTI.
“His (RBI Governor) statement should not be taken out of context as
he has recommended an adjustment and not necessarily a price cut.
The adjustment could be through other ways like easy payment scheme
to attract home buyers,” he said.
“I am hopeful that as interest rates come down, there will be more
credit and buying. And I am also hopeful that prices adjust in a
way that encourage people to buy,” Rajan had said while delivering
the Y B Chavan Memorial Lecture here.
The Reserve Bank of India (RBI) has lowered rates by 1.5 per cent
cumulatively since January last year and earlier this month the
policy rate was cut by 0.25 per cent to 6.5 per cent — its lowest
level in more than five years.