Indian developers have seen a sharp slowdown in sales as rising interest rates deter residential buyers and funding for builders becomes scarce as economic growth slows in Asia's third-largest economy.

HDFC chief also expects the central bank (Reserve Bank of India) to cut the cash reserve ratio (CRR), rather than interest rates, at its monetary policy review on January 24.

The RBI has raised interest rates 13 times since March 2010 by a total of 375 basis points in its bid to control headline inflation that has been steadfast above 9 percent for a year.

However, a rapid slowdown in food inflation in December has raised hopes of a reversal its monetary tightening cycle.