Credai surprised at rate hike, says could have been avoided

Real estate body seeks special sops to boost the sector

The Confederation of Real Estate Developers’ Associations of India (Credai), the apex body for private real estate developers in India, has expressed surprise by the Reserve Bank of India's decision to increase  the repo rates by 25 basis points in the recent review of the monetary policy.

In a press release issued by the real estate body, Credai has said the step is only aimed at combating inflation but the focus on the industry growth has been ignored.

The release quoted C Sekhara Reddy, President, Credai-National, as saying, "In these challenging times RBI's decision to raise the repo rates by 25bps is tougher than expected and could have been avoided. In the coming months we hope the Bankers will come out with special schemes to attract the home buyers."

He further added, “RBI should formulate a special policy for the housing industry with a focus on affordable housing. We hope that RBI will take cognizance of the industry requirement and will announce a rate cut, which will provide the needed trigger and encouragement to the sector."