FM wants real estate growth to dampen

The government said on Tuesday that it intends to curb demand in overheated sectors such as housing and real estate. “The intention is to constraint demand in those sectors where there are signs of what you call overheating and example of that could be real estate and housing. I think in these sectors there is reduction in demand,” finance minister P Chidambaram said.

On the impact of the RBI’s measures to tighten money supply in these sectors, he said these steps work with a time lag and it might take time to have its impact on the intended sectors. However, in other sectors there was no intention to reduce demand, Chidambaram said.