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Stimulus package good, not enough: Realtors

business Updated: Dec 07, 2008 19:55 IST

Realty industry, currently facing a slowdown, on Sunday hailed the economic package announced by the government, saying that it would boost the demand for housing in non-metros and bring back growth in the real estate sector.

However, the developers felt that more steps were needed and the package should have included home loans borrowers up to Rs 50 lakh, instead of the prescribed limit of Rs 20 lakh.

Commenting on the measures taken for the housing sector, DLF Group Executive Director Rajeev Talwar said the package would help economically weaker sections but will have limited impact in metros and super metros.

Talwar said the upper limit for home loans should have fixed at Rs 45-50 lakhs. The Centre on Sunday said public sector banks will shortly announce a package for borrowers for home loans in two categories -- for loans of up to Rs 5 lakhs and Rs 5-20 lakhs.

The country's second largest realty firm, Unitech's Managing Director Sanjay Chandra said: "The measures are good start to bring a good growth momentum to the economy.

He said these steps would bring back the growth in the real economy and real estate sector. He also felt that the upper-limit for home loans should have been Rs 30 lakh.

However, realty consultant Cushman & Wakefield Executive Managing Director (South Asia) Sanjay Verma said: "If we consider the extent of the problem of the realty industry then not enough has been done...With this step, the demand for affordable housing may increase, but it is not sufficient".

Some of the developers such as Parsvnath and Omaxe expressed disappointment on the package for housing sector.

Parsvnath Chairman Pradeep Jain said: "It's an eyewash. It is not going to spur demand". He suggested that upper limit for home loans should have been Rs 30-35 lakhs. Omaxe Chairman said: "I am totally disappointed".