News
Rajan tells realtors to reduce home prices


RBI Governor Raghuram Rajan on Monday put the onus on real estate developers, asking them to reduce prices to encourage more people to buy properties.
According to a PTI report, Rajan’s remarks also come against the backdrop of low demand for housing projects leaving developers with unsold inventories.
“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 said while delivering the YB Chavan Memorial Lecture here.
According to the report, 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.
“My sense is that there is a little bit of everything that needs to happen” for the revival in the real estate sector, Rajan was quoted in media.
“There is an issue of certainly how they see the housing market and how they see prices. There has to be an adjustment so that more people want to go and buy,” he added.
According to Rajan, apart from interest rates, measures such as including affordable housing loans under the priority sector lending requirements makes him confident to say that worries on the financing side are taken care of.
When it comes to finance to developers, Rajan pitched for more transparency on the borrower’s side.
“We need action on real side (as) also on transparency on land acquisition, on transparency on construction and on sales,” he emphasised.
Rajan further said more transparency in such matters would enable financiers to better track flow of funds, which project was being funded by who and who all were the other financiers.
Construction of every kind, including houses and roads, is a big source of growth especially for a developing economy like ours, he added.
-
News1 day ago
Godrej Group’s Anamudi Real Estates Acquires ₹80.83-Cr Land Parcel in Juhu
-
News2 days ago
BL Kashyap & Sons Reports Standalone Revenue of ₹247.14 Crore in Q3 of FY25
-
News2 days ago
Sushma Group’s Luxury Housing Project in Solan Vally Secures RERA Approval
-
News2 days ago
MHADA To Conduct 9th Lokshahi Din for Public Grievance Redressal on February 10
-
News2 days ago
MHADA Nashik Board Opens Online Applications for 493 Affordable Homes
-
News3 days ago
Raymond Limited To develop Second Residential Project in Mahim West, Mumbai
-
News3 days ago
Goodluck India Net Profit up 26% in Q3FY25 on Demand, Increased Share of Value-Added Offerings
-
News3 days ago
India Shelter Reports 36% YoY AUM Growth and 54% Surge in PAT in Q3FY25