Budget 2013-14: Realty Sector Demands Changes

Bangalore: Last year, the real estate market had been through many ups and downs, which in turn has brought discouragement for the realty industry. To revive the market growth, the real estate industry expects certain changes and provisions from the Union Budget 2013-14. Some of the points covered in this article are listed below, as reported by Moneycontrol.com.

1) Lower lending rates:

In the present market scenario, banks have imposed high rates of borrowing for developers and home buyers which in turn has slowed down the home sales. The real estate industry is hoping that the interest rates will be reduced in the upcoming Union Budget. However, the base rate reduction is essential to help banks reduce their borrowing rates. The government needs to concentrate on these particular issues in the budget which should be followed through the Reserve Bank of India (RBI) in terms of lessening the repo rates and other policies like CRR, SLR and so on to improve the flow of economy in the sector that in turn will help real estate sector to flourish.

Besides, authority bodies like regulatory and monetary authorities should reduce the home loan rates in order to provide housing under affordable option in more number of cities and towns. This measure will mainly help home buyers under lower income groups.