Thursday, 31 July 2014

"RBI's Directive on Affordable Housing will spur demand"




The RBI’s move to make city-wise classification of affordable housing and periodically review its definition is a significant step forward in boosting the real estate sector. The increase in cap of affordable housing eligible for loan under priority sector was imperative considering the rising prices of homes in the last few years. Home buyers can now avail loans easily and at a lower interest rate. As a result of this, a rise in demand of affordable housing is imminent thereby leading to more developers focusing on affordable housing segment and creating varied choice and ample supply in this segment. In the next 9-12 months, inflation is expected to be reigned in and interest rates are also expected southbound should benefit a lot of home buyers and reduce their EMI burden.

The RBI’s move coupled with the Government's various tax benefits in Budget will spur demand in real estate and as a result help realize Government’s vision of housing for all by 2022.

Omaxe has been operating at these price points in 30 cities and with RBI's impetus, we plan for an aggressive expansion of existing projects. Our offerings in these cities vary from townships, residential complexes and commercial. With plots, floors, villas, group housing etc to choose from in residential segment, Omaxe's first mover advantage into tier II and III cities almost a decade ago will further get a stamp of enhanced desirability in these cities.

- Mr. Mohit Goel, CEO, Omaxe Ltd.

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