By Accommodation Times News Service
Welcoming the new RBI governor Mr. Raghuram Rajan, developers’ apex body CREDAI Chairman Mr. Lalit Kumar Jain appealed to him to adopt a consultative process with all stakeholders before making any major policy decisions relating to real estate
Mr Jain expressed the hope that Mr Rajan, with his expertise in economic affairs, will take a pragmatic and practical view and ease restrictions on real estate and come out with policies to encourage mass and affordable housing.
Referring to the RBI’s circular to discontinue loans for under-construction projects through 80:20 schemes; Mr. Jain said it is a major setback for the real estate sector. Such an abrupt decision to advise banks against established practices will only harm business sentiment. This will ultimately cause delays in projects, thereby affecting end consumers as well. Pointing out that housing, along with construction industry, contributes almost 11% to the GDP of the country, Mr. Jain said the real estate sector in India also supports some 400 allied industries which can substantially grow if supported with proactive policies. The sector also generates significant employment opportunities, thereby contributing to the nation’s economy. The revival of realty sector is therefore vital for the overall economy.
In these times of economic uncertainty, he said, it is the need of the hour to adopt people friendly policies like low interest rates, making finance easy and affordable for buyers, etc. This will ensure that buyers’ dream of purchasing their own homes becomes a reality. “We urge the new Governor to introduce industry-friendly policies that will benefit not only the realty sector but also the end consumers.” he added.