<div><em>Analysts estimate large amounts of homes across cities lying unsold as property buyers are short of funds and many of them are waiting for interest rates to fall. <strong>Sumit Sharma</strong> reports</em><br><br>Reserve Bank of India governor, Raghuram Rajan, on Thursday (20 August) said real estate developers should consider cutting prices on their unsold inventory property to help clear up the stock as also help boost new demand.</div><div> </div><div>"I do believe that real estate developers, who are sitting on unsold stocks, should reduce prices on unsold stocks,’’ said Rajan during an interaction with Arundhati Bhattacharya, chairman of State Bank of India in Mumbai. "We need the market to clear up . . . we don’t need a situation where prices are high and demand doesn’t pick up. "</div><div> </div><div>Analysts estimate large amounts of homes across cities lying unsold as property buyers are short of funds and many of them are waiting for interest rates to fall. Developers on their side are holding prices in the hope of selling for profit.</div><div> </div><div>"It will be a big help to the sector because once there is a sense that price itself has stabilized then more people will be willing to buy,’’ said Rajan.</div><div> </div><div>Rajan said there could be a pick-up in the economy if monsoon improves and rural demand too would pick up.</div><div> </div><div>Referring to home loans, SBI’s Bhattacharya said the NPAs from this segment are minimal.</div><div> </div><div>In a situation similar to 2008, SBI could offer home loans at a rate lower than its base rate for an initial period and raise it in the subsequent years. Schemes on similar lines had helped lift demand after the global financial crisis in 2008. The same could happen now.</div><div> </div><div>Bhattacharya emphasized that due diligence on these loans would be the same as for all other regular loans.</div><div> </div><div>Rajan on his part said "I never say no your ideas. We will examine it.’’</div>
