Real estate developer Ansal API today said that any further steps by the Reserve Bank to tighten money supply could hurt the country's real estate sector.
"The hike in repo rate and reverse repo rate announced by RBI (two days ago) is not going to affect the real estate particularly housing much, but if it (RBI) again goes for a hike in rates then it will certainly impact the (real estate) sector," Company's Chairman Sushil Ansal told reporters here today.
Stating that apex bank had already taken several monetary measures to control inflation, Ansal said the government should now focus on boosting the supply side to rein in prices.
Ansal said that there was a huge shortage of houses in the country, which could not be taken care of without the support of the state governments.
"We have demand for 21 million houses in the country and we do not think that it can be met even in the next 10-15 years without the support of the state governments," he said.