The Confederation of Real Estate Developers’ Association of India expressed disappointment over the RBI maintaining status quo in the credit policy.
Mr Lalit Kumar Jain, National President, said the RBI appeared to be ‘sadly ignorant’ of the importance of real estate sector in the national economy and GDP.
Mr Jain said real estate, as a capital and labour-intensive sector, plays a key role in employment generation and growth acceleration.
He recalled that the encouragement given to real estate in 1998 kick-started the growth of cement and steel industries along with over 165 other industries, including transport.
The risks attributed to real estate and the RBI advisories against lending to real estate only harmed the sector and made housing costlier for consumers, apart from impacting the economy.
The governments at various levels have been losers on revenues, he said.
The status quo on interest rates will further dampen the sentiment.
“I hope further policies will see rate cuts positively and conservatism does not become a lasting attitude,” he added.