Reserve Bank of India’s conventional policy on bank relating to the real estate is affecting the real estate sector as accessibility of funds is becoming a somber worry, industry authorities stated.
They said that the real estate situation today is rather serious. The accessibility of funds is limited. In case,theenvironment remains the same,how can we suppose people to spend in this sector?
Another task is that the accessibility of debt has abridged. RBI has regulated banks to offer loans to the real estate sector," Piramal Group Chairman Ajay Piramalspoketo reporters on the sidelines of a meeting here nowadays.
Private equity lenders are toocareful while lending to the sector, he alleged. "The price of private equity funds is great, which is another mainalarm for us. If they do notacquire 30% return on their funds, they will not invest as they sense the risk is great. So the chief problem is accessibility of funds," he alleged.
Apart from accessibility of funds, supervisoryconsent is also evolving as a somberroot of concern for the industry, he said.
"We are facing somesupervisorydifficultiesparticularly in getting approvals for our projects. Government and supervisory authorities must understand that giving speedy permission is in the interest of the buyers. The interruption would simply result in lack of house stock," he stated.
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