Indian real estate market associations are ramping up pressure on the government to produce a “stimulus package” to help the sector.

Groups like the National Real Estate Development Council (Naredco) are petitioning for new measures to make it easier for foreign property investment firms to buy in India.

Hindu Business Line also reports politicians are being asked to intervene to ease a shortage of credit for developers looking to complete building projects.

Attention has swung to the Indian government after China announced a $586 billion package for infrastructure and other domestic projects in a bid to help its own economy.

Quoted by Hindu Business Line, Nardeco director general R.R. Singh said:

“The monetary policies of the Reserve Bank of India for real estate projects and home loans by Indian banks, closure of ECBs and rises in interest rates together with the stock market crash have lead to a situation where credit has dried up and buyers are hesitant to invest despite a strong demand.”

Last month the Reserve Bank of India (RBI) cut rates by 100 basis points to eight per cent following a meltdown in financial markets.

RBI said it would continue to monitor the situation and would take more action “as appropriate”.

Foreign investment in Indian property remains a contentious issue in some areas, with the government recently warning against illegal sales to outside buyers, particularly in the Goa region.

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