Real estate developers and consultants said on Friday that the RBIThe decision to keep key rates unchanged means low interest rates on home loans will continue, but said a further cut may have boosted demand for housing which has shown signs of recovery in recent months .
RBI Governor Shaktikanta Das said the Monetary Policy Committee (MPC) voted unanimously to leave the key repo rate unchanged at 4%. In his statement, Das also mentioned that the data on sales and new launches of residential units in major metropolitan centers reflect renewed confidence in the real estate sector.
Home sales were strongly impacted during the April-June quarter of this fiscal year due to containment to control the COVID-19 pandemic. However, sales recovered thanks to pent-up and festive demand, as well as a low mortgage interest rate of around 7% from October to December 2020.
“In the given scenario and market circumstances, the RBI’s stance on the unchanged repo rate is very much as expected, although a rate cut would have been preferable to combat the negativity of the repo rate. economic crisis caused by the pandemic in the industry, ”said Naredco President Niranjan Hiranandani. noted.
Sanjay Dutt, Managing Director and CEO of Tata Realty and Infrastructure, welcomed the decision of the umbrella bank to keep key rates unchanged for the fourth time in a row. “Maintaining this accommodative outlook is extremely crucial, especially with the green shoots of the recovery that are visible now.”
Maintaining the status quo by the RBI for the fourth time in a row is a positive step towards stimulating consumption, said Anshuman Magazine, chief executive officer for India, Southeast Asia, Middle East and Africa from CBRE.
Anarock chairman Anuj Puri said the real estate industry still longs for reduced interest rates.
“The demand for housing is picking up again, and this demand must be encouraged. However, the current position of the RBI is absolutely justified given the unique circumstances. We are certain that the rates will be adjusted favorably once the demands of the pandemic have subsided, ”he said.
Dhruv Agarwala, CEO of the group, Housing.com and Proptiger, said the RBI’s decision to keep the repo rate unchanged as well as an accommodating stance is understandable at this point. “Although a further cut in key rates would have boosted the current rise in demand that we have seen recently,” he added.
The measures announced by the Governor of the RBI today to improve liquidity in the economy are indeed a good step and were much needed, he said.
Real estate firm Gaurs Group MD Manoj Gaur said RBI’s move was in line with market expectations. “Headline inflation is now on a downward spiral, giving hope that the RBI will be able to lower repo rates as the year progresses.”
Ramesh Nair, former CEO of JLL India, said the expectations of the real estate industry were for deeper cuts in policy rates.
“Since the RBI has not cut rates, it should now try to ensure that previously announced rate cuts are fully passed on to end users and developers and also focus on increasing the overall amount of the rate. credit available for the real estate industry, ”Nair said.
Knight Frank India CMD Shishir Baijal said the decision was as expected. and added that measures on the enhanced bank financing window for NBFCs will also benefit struggling sectors, including real estate. “As we have seen in recent months, the housing markets in the country have reacted well to the low interest rates on home loans.”
Developer based in Bangalore Puravankara Ltd Managing Director Ashish Puravankara said the RBI’s decision to keep the repo rate unchanged will certainly reassure homebuyers looking to invest in real estate and create latent demand for housing across the country as rates interest rates are at their lowest levels of the decade.
Samantak Das, chief economist and head of research, JLL India, said the status quo on policy rates is a welcome step for homebuyers as they can take advantage of the lowest mortgage rates going on.
Savills India CEO Anurag Mathur said that while there has been no downward revision to benchmark lending rates, the dovish stance should be useful for real estate as well as infrastructure.
Piyush Bothra, chief financial officer of Square Yards, called it a positive move, ensuring that mortgage interest rates do not harden in the coming days. “Low interest rates have started to have a positive impact on real estate markets. Maintaining low mortgage rates was essential for a sustainable recovery in the real estate sector. “
ABA Corp Director Amit Modi said it would have been a relief if certain benefits had been extended to the industry today.
Mumbai-based S Raheja Realty Director Ram Raheja said mortgage rates will continue to be at their lowest in several years, helping homebuyers while Nahar Group Manju Yagnik said RBI’s continued accommodative stance was the need of the hour to support growth. while ensuring adequate liquidity in the system.
Kaushal Agarwal, chairman of The Guardians Real Estate Advisory, said after a budget that included limited announcements for real estate, the industry was hopeful of a further cut in pension rates.
The reduction would have helped spur growth in demand for real estate which has been hit hard by the pandemic and subsequent lockdowns, he added.
Investors Clinic founder Honeyy Katiyal said this indicates mortgage interest rates won’t go up anytime soon, while hBits founder Shiv Parekh said the RBI move shows that the interest rate for homebuyers would remain stable.
hBits is in fractional ownership of commercial real estate.
Sarojini Ahuja, vice president – Sales and Marketing, Transcon Developers, said RBI’s accommodative stance will help mitigate the effects of COVID-19 on businesses and be key to the recovery of real estate and the market. economy in general.