The Confederation of Real Estate Developers Associations of India (CREDAI) has announced that there is absolutely no scope to reduce the prevailing rates for houses/flats.
Reserve Bank of India Governor Mr. Raghuram Rajan had emphasised on 20th August construction companies should now come forward to reduce the prices of houses/flats especially as lakhs of constructed houses are lying unsold.
As a response to this, CREDAI`s reply has been released. It says that the prices of houses/flats have been already reduced to the maximum possible extent. CREDAI President Mr. Kitamber Anand informed that any further reduction will make way for huge losses for the building industry sector.
He further observed that the only recourses for price reduction would be reducing the interest rates on housing loans and offering tax concessions.
He added the prices of houses/flats have been reduced by 15% to 20% during the last 2 years whereas the building expenses have gone up by 15% to 20%.