Members from the Confederation of Real Estate Developers Association of India (CREDAI) will be meeting the RBI Governor D Subbarao next week to demand more Government support for the struggling real estate sector. The developers are likely to push for lower interest rates and restructured debt for the developers.
Speaking to The Indian Express, Pradeep Jain, Chairman, Parsvnath Developers said, “We will approach the RBI to demand a restructuring of existing debt by way of Financial Institutions (FIs) granting a minimum moratorium period of a year. Beyond one year, terms and conditions will be up to FIs. Also, the recently reduced interest rates for home loan borrowers upto twenty lakh rupees should be increased to thirty lakh rupees for customers in metros only. In addition, the home loan mortgage interest rate still needs to fall below 10%.” The real estate sector continues to demand relief even as the new stimulus package allows developers of integrated townships to borrow funds from overseas and asks states to release land for low and middle-income housing schemes. However, the industry believes that liquidity should improve as a result of these measures.