Track2Realty-Agencies: The Finance Ministry has expressed the view that the Reserve Bank should allow real estate companies and broking firms to set up banks as adequate safeguards will be there to prevent exposure of promoters to related entities.
Track2Realty-Agencies: Realty firms and property consultants have expressed disappointment over RBI’s decision to keep key policy rate unchanged and said it was the right time to bring down the borrowing cost for home buyers as well as developers.
DLF’s Chairman K P Singh has said that RBI’s monetary policy should not stunt the growth of real estate sector and uninterrupted access to affordable finance is vital for this business.
Terming RBI’s decision to reduce cash reserve ratio (CRR) as a “positive step”, the industry body Confederation of Real Estate Developers’ Association (CREDAI) said on Friday, march 9, the move would enable financial institutions to fund real estate projects.
India’s real estate sector will be among the worst hit by the Reserve Bank of India’s decision to raise key interest rates, experts have said.
The Reserve Bank of India has laid out strict and tedious due diligence standards for banks in sanctioning loans to the real estate sector.
The Reserve Bank’s decision to raise key policy rates by 25 basis points today is likely to have a negative impact on the real estate sector.
The finance ministry has asked the central bank to bar real estate firms from seeking banking licences and alter conditions relating to financial inclusion and stake dilution by promoters.
The Sahara Group has taken umbrage over a Reserve Bank of India (RBI) advertisement, issued earlier this week, asking customers to be cautious about deposits raised by the Sahara India Pariwar and has challenged the central bank’s jurisdiction to do so.
The Fitch Ratings 2011 outlook for the Indian real estate sector seems to contradict itself. While it says the realty market is stable in the year, it also warns of a negative bias. The negative forecast of Fitch Ratings is, however, based more on the sentiments than the emerging market reality.