Archive · 27 Jun 2025
NAREDCO Urges Lower Home Loan Rates to Boost Housing Sales Amid Slump
The housing market is slowing down because houses are too expensive compared to what people earn.
To fix this, a real estate group called NAREDCO wants banks to lower home loan interest rates to around 6%.
Sales are dropping, and prices are still going up.
Also, land has become more expensive, which makes it tough to build affordable houses.
The group hopes that by lowering interest rates and other measures, more people will be able to buy homes and the market can recover.
NAREDCO urges financial institutions to lower home loan interest rates to about 6%.
Housing sales in the top seven cities fell by 20% in the latest quarter.
Housing prices in India's top seven cities rose 11% annually during April-June 2025.
NAREDCO cites a mismatch between property prices and income growth as a key challenge.
Delhi-NCR saw the steepest price rise at 27%.
- Who
- The National Real Estate Development Council (NAREDCO) and financial institutions.
- What
- NAREDCO is urging for lower home loan interest rates to revive the housing market amid a sales slump.
- When
- Sales data is for April-June 2025, following previous quarter declines.
- Where
- Top seven cities in India, including Delhi-NCR, MMR, Bengaluru, Pune, Hyderabad, and Kolkata.
- Why
- To revitalize demand and address the challenges of high property prices, stagnant income growth, and rising land costs.
NAREDCO Position
No Direct Opposition Stated
Interest Rate Reduction
NAREDCO Position
NAREDCO advocates for lower interest rates (around 6%) to stimulate demand.
No Direct Opposition Stated
No direct opposition stated.
- Requested interest rate
- Around 6%
- Current interest rates
- Around 7.5-8%
- Sales decline (latest quarter)
- 20% in top seven cities
- Housing price rise (annual)
- 11% in top seven cities
- Delhi-NCR price rise
- 27%
- Sales Decline (PropEquity)
- 19%