Realty sector feels let down

Realty sector feels let down
The Hindu Business Line, February 17, 2009, Page 5

Our Bureau, Mumbai, Feb. 16

Expectations of realty players appeared to be belied.

Mr Rajesh Vardhan, Managing Director of the Vardhman Group said “Since this is a vote on account budget, no one expected any major policy changes in the Budget. Yet, there were some small measures that could have been introduced. For example, the Government could have increased the deduction for interest paid on housing loans from 1.5 lakh to Rs 2 lakh a year. In fact any steps to reduce interest on housing loans would have been welcome in the current market conditions.”

Expressing disappointment, Mr Rohtas Goel, Chairman and Managing Director, Omaxe Ltd, said, “The Budget was completely lacklustre. While one can understand that this was an interim Budget, given the adverse business sentiments, the Government could have taken exception and announced some sops for reviving the market. Benefits for housing would have created a ripple effect in the market and helped in giving a positive push to the economy.”

Mr Kaushal Sampat, COO, Dun & Bradstreet India, said, “With the lack of major growth stimulating measures in the interim Budget, we expect the RBI to cut interest rates further before the April monetary policy review to stimulate demand to a certain extent.”

Mr Anshuman Magazine, Chairman and Managing Director of CB Richard Ellis, South Asia Pvt Ltd, felt that “Although the expectations from the vote on account were limited as elections are due soon, the real estate industry was still hoping to get some stimulus, and none were announced.”