The real estate sector is facing major challenges of liquidity squeeze and has not benefitted from recent interest rate cuts by the Reserve Bank of India, the National Real Estate Development Council (NAREDCO) said on Monday.
NAREDCO president Niranjan Hiranandani said the RBI cut repo rate by 75 basis points this calendar year but it did not reach the real estate sector. "We demand a rate cut of another 75 basis points and this should be passed on to the real estate sector," he said.
Hiranandani said the sector is facing major challenges like delay in land acquisition, lack of skilled workforce and high development rates which should be addressed by the government in collaboration with apex trade bodies.
The Pradhan Mantri Aawas Yojana (PMAY) can be a growth driver for the real estate industry which continues to be the second-largest employment generator.
"In the next three years, 1.1 crore homes will be built under the PMAY," said Hiranandani adding that 269 industries are directly connected to the real estate sector.
Talking to ANI, Rajeev Talwar, Chairman of NAREDCO and CEO of DLF, urged the RBI for a rate cut in upcoming credit policy and direction to banks for passing on the benefits to real estate sector which he said is poised for a 30 to 35 per cent of growth this year.
NAREDCO has also urged the government to facilitate fast adoption of modern construction technologies.
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