Ensuring Success in Real Estate through Financial Discipline and Lower Interest Rates

At the Assocham National Conference on Real Estate, Sanjeev Kumar Arora from Haryana regulatory authority emphasized the importance of financial discipline in real estate projects and urged for lower home loan interest rates to boost demand. Pradeep Aggarwal highlighted the sector's role in making India a top economy.

No real estate project can fail if developers maintain financial discipline from the very beginning, Sanjeev Kumar Arora, member of Gurugram bench of Haryana regulatory authority, stated during Assocham's National Conference on Changing Dynamics of Real Estate for Viksit Bharat.

He also pitched for reduction of interest rates on home loans to boost demand, noting the importance of maintaining a healthy debt-to-equity ratio. Arora highlighted the role of the real estate sector in the Indian economy, particularly in job creation.

Arora noted that rationalizing interest rates would likely attract more investors and homebuyers, benefiting builders by enabling them to deliver projects at lower costs. He mentioned that approximately 1,25,000 projects and 75,000 brokers have been registered under RERA since its enactment.

Pradeep Aggarwal, Chairman of the National Council on Real Estate, Housing and Urban Development at Assocham, emphasized that the real estate sector is vital for making India a leading economy. Urbanbriq Development Management Pvt Ltd Director Vineet Relia expressed concerns about a potential downcycle without more government support for affordability.

(With inputs from agencies.)