On a day when the Reserve Bank kept the key interest rates unchanged, in a mere coincidence DLF Chairman K.P. Singh has called for a major reorientation in monetary policies aimed at encouraging home ownership by providing home loans/mortgages at affordable rates.
Mr. Singh was not reacting to the RBI action, but had put forth the suggestion to revive the real estate sector in his annual message to the shareholders.
“This would not only revive demand and help achieve the target of ‘Housing for All’, but will also give a boost to building activity. Secondly, the real estate development is beset antiquated laws and a host of regulations that are a major impediment to growth,” he wrote in his message.
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Mr. Singh said that Prime Minister Narendra Modi’s announcement of visionary initiatives such as ‘Smart Cities’ and ‘Housing for All’ aroused great expectations of a robust revival for the real estate and urban housing sector.
“Unfortunately, such expectations have not yet been realised and the sector continues to face a plethora of challenges, including rising input costs, high interest rates and sluggish demand,” he added.
He also said that we should ponder about why this vital sector, which is universally acknowledged as a powerful engine of growth that contributes more than 7 per cent to the country’s GDP, is not reflecting the overall uptrend being experienced by other sectors of the economy.
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“The truth is that housing and real estate development is a unique industry unlike any other sector like manufacturing or services. It needs policies specifically framed to cater to its special characteristics.” This sector has a major multiplier effect on the entire economy, creating jobs across the spectrum, he said.