Reserve Bank Governor Raghuram Rajan on Thursday made a case for reduction in property prices given the high inventory of unsold flats across the country.Dr. Rajan while speaking at the State Bank of India conclave in Mumbai said if the real estate developers, who are sitting on unsold stocks, start bringing down prices, that will be a big help to the sector because once there is a sense that the prices have stabilized more people will be willing to buy.He said the market needs to be cleared and ways to do it should be figured out. The Governor said banks should explore ways to make home loans easier, but quickly added that property prices must fall before rates are brought lower.His comments come at a time when the realty sector is struggling with low demand and rising inventory of unsold flats. Property prices in some cities have witnessed small corrections, but analysts say there's further scope for decline in property prices.
News On AIR | August 20, 2015 2:58 PM
Reduction in property prices a big help to the sector: RBI Governor