Realty prices set to fall as Govt. willing to reduce cost of funding

CREDAI initiative with Finance Ministry evokes positive response
Banking Sec. Ministry of Finance asks realtors to work on price cut, sets the ball rolling
NEW DELHI, August 30, 2012: The Sec. Banking ,Ministry of Finance has agreed to look into the problems being faced by the real estate industry and work towards reducing the cost of funding through banks and financial institutions.
This follows the meeting that developers apex body CREDAI Chairman Mr Pradeep Jain had with Mr D.K. Mittal, Secretary – Ministry of Finance (Banking & Insurance), Government of India, today.
Expressing happiness at the positive response from the Banking Secretary Ministry of Finance, Mr Pradeep Jain said: “We had a very cordial and fruitful discussion as we raised the various issues being faced by developers across the country in terms of high cost funding and escalating cost of material which adversely affect the cost of housing.”
“Mr Mittal promised that the Government will look into the problems of the Real Estate Developers and work towards reducing the cost of financing through the Banks and Financial Institutions,” he said.
With these positive developments, CREDAI is hopeful that a lasting solution to the vexed issue high cost of realty will be worked out and the common man will be able to own his dream house.
The Banking Secretary assured to have a detailed discussion on these matters in next couple of weeks to work out on detailed roadmap on how the Real Estate Industry can be benefited to provide the affordable housing on an affordable price to Aam Aadmi.
Calling for launching a mission to make India Housing Surplus from the current status of a housing deficit nation by 2020, CREDAI said revival of the real estate industry will rejuvenate the entire economy since realty supports 250 industries, generates employment and contributes 11% to GDP.
CREDAI also has written an open letter to the Prime Minister and set a 10-point agenda of action for taking the nation on an accelerated growth path while solving the housing problem faced by millions of people across the country and suggesting comprehensive reforms in the real estate industry covering land, administration, banking and tax.
CREDAI for long has been campaigning for a single window system of clearances to down the time lost in granting approvals and thus help speed of execution which could ultimately lead to saving money and time.
“We the developer community is always ready to work with the government as a partner in progress and play a meaningful role,” Mr Jain added.