Confederation of Real Estate Developers Association of India – CREDAI expressed their hope of 20 percent improvement in the housing sales. This improvement will be mainly in the major cities of India. Smaller cities always remained unaffected by the interest rates.
A marginal fall in the rate of interest on home loans during the festival season will increase housing sales. Last month has seen the growing number of enquiries. Those who seek to buy home for the last two years will find this as the most opportune time to buy. The fall in the interest rate is a signal to the buyers.
Mr. Lalit Jain, president of CREDAI, said to the media that the interest rate has fallen deep. He continued to say that there is a signal which shows that it may again go down.
Comparing the expected sale with this year with that off the previous year 2011 he told that it would be around a 20% increase in 26 major cities of India.
He further pointed to the fall of interest rate by a margin of one point. Notably some banks are about to increase the period of loan from the current 20 years to 30 years. These two factors will boost the sale. The last two to three years witnessed a slow rate of growth in the home selling. This was due to the high interest rate which kept the buyers away.
He opined that small cities in last few years remained unaffected. This year too these small cities will not have high rate of growth. The sale also will not be increased in these areas.
At the same time CREDAI decided to move forward with the acquisition of environment clearance. This approval is the most time consuming one among all the other approvals of the real estate projects.
Environment clearance is considered as a green terror which halts real estate projects on the half way. This halt is done in the name of environment. Mr. Jain suggested the environment department personnel to look into this matter. He pointed that this kind of delay in approving real estate projects brings a great deal of cost to the nation.
He further requested the department of environment to comprehensively prepare a checklist that will not compromise on quality aspects of environment. This will prepare the approving authority to complement with the check list and approve the real estate projects without any unwanted and undesirable delay.