Mumbai: Without heeding to the nudge from the government to cut prices to address the demand slump, the real estate industry groupings Tuesday sought more sops from the policymakers to help the battered sector.
Among other aspects, they are pushing to extend the definition of ‘affordable housing’ to homes costing up to Rs 75 lakh as against a maximum of Rs 45 lakh right now, possibly with an eye on larger number of projects and buyers to enjoy already existing sops.
Despite interest rates being set by market forces, Credai-MCHI (Maharashtra Chamber of Housing Industry) wants a reduction in home loan rates to five per cent as against a prevailing rate of over seven per cent at which the best grade borrower can get money from financiers.
A few days ago, Union Minister Piyush Goyal had categorically told the industry to lower the prices in order to take care of the inventory levels. Reports from the ground suggest the industry is yet to pay heed to the nudge. Meanwhile, the industry keeps making newer and more radical suggestions for help, like the demand for a USD 200 billion stimulus made by a realtor recently, usually citing the trickledown effect which it possesses on various other sectors which can help lift the economic growth.
A recent report by ‘Magicbricks’, a property classifieds portal, said while the overall property prices across top eight cities remained range-bound with a decline of up to 5 per cent in some pockets in the June quarter, Mumbai Metropolitan Region (MMR), despite being worst hit by COVID-19, had an average price decline of only 0.4 per cent to 0.8 per cent.
Credai action committee chairman Ajay Ashar said the body is also seeking realistic ready reckoner rates and also a waiver in earnest monthly installments for the first two years after buying a flat, and called these as ‘workable steps’ which the government can take to revive sentiment.
