The Piramal Group chairman said if a person keeps reading in the media that prices are going to go down, he will not invest in a house, which is the biggest aspect of a person's savings.
Responding to a government nudge to lower prices, realty player Ajay Piramal on Friday said such a move will not make a difference to sagging demand and pitched for stability in prices to make the common man “feel good about life”.
A few weeks ago, union Minister Piyush Goyal had asked the real estate sector to sell houses at “realistic levels” by lowering prices or continue complaining about high inventory levels.
“It is not a question of pricing, prices are very decent,” Piramal said.
“Price is not going to make a difference. We have seen it enough. It is demand which needs to be generated. I think people need to feel positive about investing,” he said at the annual economics conference of SBI.
The Piramal Group chairman said if a person keeps reading in the media that prices are going to go down, he will not invest in a house, which is the biggest aspect of a person’s savings.
“If you want a person to feel good about life, you’ve to see that real estate prices are kept at a steady level. Otherwise, if I have a house and I feel that my price is going down every day, that is not a great place to be in,” he said.
He reiterated the industry’s long-standing demand for sops, saying the government needs to give a “fillip” to the real estate sector given its importance in the economy.
Over 250 industries are linked to the sector, which also generates the biggest employment opportunities, he said, specifically pitching for lowering of premiums and taxes in cities like the financial capital and also quicker project clearances.
Piramal, who also runs a non-bank lender, said private banks and mutual funds are completely shying away from lending to NBFCs at present.
He said better-rated NBFCs are not finding it difficult to get liquidity following the measures taken by the RBI, but private sector banks and mutual funds are staying away from the sector.
Only state-run lenders, led by SBI, are backing the sector, he added.
SBI Chairman Rajnish Kumar said even though there are “expectations” from the government brass, all the lending done by the bank is based on commercial decisions.
“We have never been fair weather friend, and we have always supported people and stood by them in good times and bad times,” Kumar said.