Builders eye lower interest rates

Demand in the real estate sector is likely to sink further in the coming months, as the recent steps by the Reserve Bank of India (RBI) need to couple with low property prices and further injection of liquidity,  according to  a report by Jones Lang LaSalle Meghraj.

There has already been an overall 40-45% fall in demand in the real estate sector, the report mentions.

However, developers are of the view that the measure to bring loans up to Rs 20 lakhs for housing under priority sector will boost lending in the real estate sector.

Sachchidanand Rai, managing director, Eden Realty, a real estate firm with focus on medium income and low income group  housing, said, "the measure to bring loans up to Rs 20 lakhs for housing under priority sector would boost lending in the two segments substantially in the coming months."

However, the demand for housing in the high income group segment would depend upon the resurgence of the stock markets, added Rai.

It is to be noted, Eden Realty recently announced to provide additional car parking space for property in the Rs 20-30 lakh bracket.

"We have to take a hit of about Rs 1 lakh on each unit, but that has been factored by slide in the price of cement and steel," said Rai.