KP Singh, Chairman of realty major DLF recently said that the Indian real estate will be seriously affected if lending rates for home loans continue to rise unabated. “He said that real estate sector will be affected no because of the current global issues but because of our internal problem which is rising interest rate” Singh told reporters when asked about the impact of financial crisis in US on the domestic real estate sector.
Key policy rates (repo rate and reverse repo rates) have been enhanced 11 times by RBI since last March to control inflation which has forced banks to increase the lending rate sharply on home loan as well as loans to developers.
He was of the view that if the interest rates keep going up the way they are going, the real estate sector is going to suffer. He further observed “Now, the focus is to contain inflation which is right but too much emphasis on inflation is not good for growth,”.
Addressing the company’s shareholders at the annual general meeting last week, he had said: “A sustained level of high inflation and interest rates…Have impacted economic growth and moderated the growth in our industry as well.” On the proposed central draft Land Acquisition Bill, he said it is good as it takes into account the compensation and the rehabilitation of land owners. However, he said the “government must retain the power to acquire land for public purposes.”
Posts
