The country?s largest real estate firm, DLF?s chairman, KP Singh on Thursday demanded that mortgage rates should come down to 6% to generate more demand in the sector.
Singh said that government should reduce taxes for prices to come down. ?Prices have come down..more will come down, government should roll back taxes?, Singh said. He thinks banks need to lower their mortgage rate for demand to pick up in this sector.
?Housing and construction sectors are key sectors.for revival of economy..industry needs more funds,? he said.
If this industry does not revive then there could be a cascading effect on a lot of industries and it will have a negative impact on the economy.
While admitting that demand is much less than supply, Singh said that there can be lay-offs in the future if the situation continues.
Singh said that demand drives prices. He said that this is a free economy and if demand falls price of property will automatically come down.
Singh said he does not think that real estate prices have been overpriced at any point of time.
He said it has increased gradually like any other sector and hence it needs incentives from the government to bring down prices. He also said the company had deferred some of its projects due to poor demand. ?In hotels, residential and commercial everywhere… deferred because of lower demand and liquidity crisis,? he had said.