Omaxe Targets Small Cities to Offset Slowing Demand

New Delhi -- Omaxe Ltd. is shifting focus to smaller Indian cities where it plans to increase its land bank substantially, a move that will likely help the property developer offset sluggish demand for new homes in key metro cities. India's central bank has raised its main lending rate by 3.0 percentage points since March last year, driving interest rates on commercial lending to multi-year highs. This has prompted many--especially those who buy properties as investment and let them out--to postpone purchases in cities like New Delhi and Mumbai, though demand has been steady in small cities and towns where people buy real estate mainly for own use.