The Reserve Bank’s decision to cut key interest rates is likely to reduce borrowing cost for both home buyers and developers leading to increase in housing demand, realty firms and consultants say.
The realty firms and consultants sought further cut in interest rates and policy reforms for the growth of realty sector, which is facing a huge demand slow down in last few years. It is a good move and the Banks should now pass on the benefit to boost demand. They further say that the interest rates on home loans should be fixed between 9 to 9.5 percent. The President of Realtors’ Apex body CREDAI terms RBI’s decision as good step but too less and he opined that the market was expecting bigger reduction; and that the Banks should pass on the benefits immediately to the buyers, as per RBI directions, which only will stimulate the over all demand. In fact this move of RBI has come as a breather for the real estate sector; and such liberal moves coupled with policy reforms are necessary for the revival of the real estate sector in our country, they added.
The realtors also opine that the cheaper loans for home buyers will prompt a renewed interest in residential property purchase from end users as well as investors.
NCDRC Orders to Unitech may set Precedent
in cases of Delays in Home deliveries
The National Consumer Disputes Redressal Commission’s (NCDRC) directive to Unitech to pay compensation at 12% per annum for delaying delivery of apartments to buyers in one of its Gurgaon projects is likely to become a precedent in cases filed by several other home buyers’ associations across the country, according to Experts.
As per information, more than half of the real estate projects across the country are currently delayed by over 12 months, of which about 25% are delayed by over 36 months.
The above Judgement and Order of NCDRC will impact all cases where buyers are looking for possession of their flats. People are now aware that they can take on a builder and get reprieve from Courts and Tribunals. Many people who were scared earlier but now on the strength of this Judgement and order, have got a ray of hope; and venturing to file a case against Unitech.