Real Estate Sector Seeks Liquidity and Affordability Boost
Shraddha Kedia-Agarwal, Director of Transcon Developers, highlights the impact of an unchanged repo rate on metro housing demand: 'An unchanged repo rate allows the market to stabilize, but the real estate sector still needs a liquidity boost and affordab
Real EstateHousingLiquidityAffordabilityRepo RateReal Estate NewsDec 06, 2024
Shraddha Kedia-Agarwal, Director of Transcon Developers, a prominent player in the real estate market, emphasizes the importance of liquidity and affordability. 'An unchanged repo rate is a positive sign, but it is not enough,' she says. 'The sector needs more substantial support to address the liquidity crunch and make housing more affordable for the average buyer.'
Transcon Developers is a leading real estate company known for its innovative projects and commitment to quality. With a strong presence in major metro cities, the company has a deep understanding of the market's dynamics and the challenges faced by homebuyers.
The liquidity issue in the real estate sector has been a significant concern for several years. Developers face difficulties in securing funds from banks and financial institutions, which has led to delays in project completions and increased costs. 'Without adequate liquidity, developers struggle to complete projects on time, leading to a backlog of unsold inventory,' explains Kedia-Agarwal.
To address this issue, Kedia-Agarwal suggests that the government and regulatory bodies should consider lowering interest rates on home loans and providing incentives for first-time buyers. 'Reducing the cost of borrowing can significantly boost demand and make homeownership more accessible to a broader segment of the population,' she notes.
Affordability remains another critical factor in the real estate market. The rising costs of raw materials and labor have put additional pressure on developers to increase property prices. 'We need measures to reduce the cost of construction and make it easier for developers to pass on the savings to buyers,' Kedia-Agarwal adds.
The government has taken some steps to support the sector, such as the launch of the Pradhan Mantri Awas Yojana (PMAY) and the Affordable Housing for All (AHFA) scheme. However, more needs to be done to ensure that these initiatives reach the intended beneficiaries.
Kedia-Agarwal also points out the importance of transparency and trust in the real estate market. 'Buyers need to have confidence in the projects they invest in. Ensuring transparency in project timelines and budgeting can go a long way in rebuilding trust,' she says.
In conclusion, while the unchanged repo rate provides some stability, the real estate sector requires a comprehensive approach to address liquidity and affordability issues. By collaborating with the government and regulatory bodies, the industry can work towards a more robust and sustainable future.
Transcon Developers is committed to playing its part in this journey. With a focus on innovation and customer satisfaction, the company aims to contribute to the growth of the real estate market and make homeownership a reality for more Indians.
Frequently Asked Questions
What is the current repo rate and its impact on the real estate sector?
The current repo rate remains unchanged, which provides stability to the market. However, the real estate sector still requires additional liquidity and affordability measures to drive demand and growth.
Why is liquidity a significant issue in the real estate sector?
Liquidity is a major concern for developers who face difficulties in securing funds from banks and financial institutions. This leads to delays in project completions and increased costs, affecting the overall market.
How can the government support the real estate sector in terms of affordability?
The government can support the sector by lowering interest rates on home loans, providing incentives for first-time buyers, and implementing measures to reduce the cost of construction.
What initiatives has the government taken to support the real estate sector?
The government has launched initiatives like the Pradhan Mantri Awas Yojana (PMAY) and the Affordable Housing for All (AHFA) scheme to support the real estate sector and promote affordable housing.
How important is transparency in the real estate market?
Transparency is crucial for building trust in the real estate market. Buyers need to have confidence in the projects they invest in, and ensuring transparency in project timelines and budgeting can help in this regard.
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