A day after RBI governor Raghuram Rajan advised builders stuck with unsold inventories to cut rates, realtors' body CREDAI on Friday said there is no scope to reduce housing prices and demanded that interest rates on home loans as well as taxes should be reduced to boost demand.
“While we respect the RBI governor's concern over kick starting the real estate sector, it would be prudent to say that from the developers side that a substantial reduction in prices has already happened across the country,” CREDAI president Getamber Anand told PTI.
“Any further decrease in sale prices would mean an out of pocket expense for the developers thereby acting as the last nail in the coffin of an industry which contributes so much to the economy and employment at large,” he added.
Anand said housing prices have gone down by 15-20 per cent on an average in last two years across India, while input costs have risen by 15-20 per cent. It has about 10,000 realty developers as members.