Union Budget 2016: Arvind Jain, Managing Director – Pride Group

Lending rates for real estate development are excessive, and raising funds through other sources is even more expensive.

Written by: India.com Business Desk

Updated: February 29, 2016, 10:40 AM IST

Share

Share Article

• Facebook
• WhatsApp
• X
• Email
• Telegram
• Linkedin

https://www.india.com/business/union-budget-2016-arvind-jain-managing-director-pride-group-984380/ Copy

Arvind Jain, Managing Director – Pride Group shares his expectation from Union Budget 2016

The Union budget should bring a significant decrease in interest rates on home loans. The Ministry for Urban Development and Housing had previously underscored its commitment to this cause, and the upcoming Budget will hopefully bring firm evidence of this focus. Developers, home buyers and banks are all keenly awaiting such an announcement, which would bring with it a significant revival in sentiment.  (Also Read-Union Budget 2016: Here’s what Arun Jailey should do to boost power sector)

Also, the budget needs to do something to bring down the cost of borrowing for developers, because raising capital for development of new projects remains a huge challenge. (Also Read- Union Budget 2016 Live News Updates of Arun Jaitley’s Speech in Parliament: Finance Ministry reaches Lok Sabha)

Lending rates for real estate development are excessive, and raising funds through other sources is even more expensive. The interest rates on lending to real estate developers should be brought down so as to help rationalize the cost of construction. This would also help in bringing down property prices.