Realty players laud RBI decision, find it on expected lines

Major stakeholders and top developers have appreciated the RBI’s decision to keep key policy rates unchanged. They are hopeful that the low interest regime will benefit home loan borrowers leading to spurt in demand. Some have also lamented the lack of any industry-specific measures. Herewith, we reproduce the feedback of the realty sector to the RBI decision:   

“On widely expected lines, the RBI on August 6 decided to maintain a status quo on key policy rates. The decision of the RBI MPC augurs well for the real estate industry in general and homebuyers in particular, since the record low interest rate regime would enable a large number of buyers to invest in property. The extraordinary liquidity support the RBI has provided to the economy in the aftermath of the coronavirus pandemic is highly commendable.”

Vikas Wadhawan

Group CFO, Housing.com, Makaan.com and Proptiger.com

“While a stable repo rate is appropriate, the need of the hour is industry-specific measures. We need to keep the buyers motivated, especially when the festival season is approaching. The requirement was to decrease the interest rates further to rekindle demand, making homes and real estate assets more appealing with low EMIs.”

Uddhav Poddar

MD, Bhumika Group

“The RBI’s goal is challenging since it must maintain its accommodative stance for as long as it is needed to stimulate and sustain growth and continue to offset the impact of COVID-19 while keeping inflation within the target range. However, no one can deny the importance of the real estate sector and its requirements. The sales are gradually coming back and looking bright, but the sector is expecting measures that could trigger sales in sync with the increased realisation of the potentiality of real estate assets.”

Amit Modi

Director, ABA Corp

“The unchanged repo rate decision by the RBI is on the expected lines; the apex bank maintained the accommodative stance that is the need of the hour. However, the real estate sector has been expecting sector-specific measures that could trigger healthy growth. Although the Government has taken some steps to help the sector in recent months, additional reforms are required to allow the sector to thrive.”

Manoj Gaur

CMD, Gaurs Group

“We appreciate the apex bank’s continued accommodative stance. Real estate has made a strong demand for low house loan interest rates, and the RBI has helped the sector by maintaining the status quo.”

Pradeep Aggarwal

Chairman, Signature Global

“Over the past few months, low home interest rates have worked well for the affordable housing buyers; the continuation of the scenario is good news for the segment, which attracts maximum demand. The market is buoyant and started picking up the pace that will improve with the festival season.”

Rajat Goel

Joint MD, MRG World

“The sentiment seems to be quite optimistic with recurrent accommodative stance by 250 basis point reduction in repo rate since February 2018 even in the wake of inflationary pressure. This signals market buoyancy with steady economic recovery; regained momentum in consumption in the wake of urban job stability leading to increase in private spending.”

Niranjan Hiranandani

National President, Naredco

Keeping interest rates benign will keep the housing momentum going.  With home prices stable for the last five years and home loan interest rates at a historic low, there’s a clear revival of India’s real estate-cycle. The residential sector makes up for 75 per cent of the sector and a strong housing demand is GDP-accretive.”

Amit Goyal

CEO, India Sotheby’s International Realty

“Despite increasing inflation, the RBI’s decision to maintain the repo rate status quo is a strong signal that growth is important. The soft interest rate environment will benefit home loan borrowers and sustain homebuying sentiments that have picked up post-the second COVID wave.”

Piyush Bothra

CFO, Square Yards

“The unchanged repo rate regime works well for home loan borrowers as the floating retail loan rates, which are directly linked to external benchmark repo rates, have been at the lowest level in the last two decades. The continuation of this low interest rate regime supports the environment of affordability which has become the new hallmark of the housing market – during the pandemic, and even before.”

Anuj Puri

Chairman, ANAROCK Property Consultants

“The RBI’s continued maintenance of an accommodative stance will help sustain homebuyer sentiments. The continued low repo and reverse repo rates (4 pc and 3.35 pc respectively) would mean that homebuyers would continue to secure loans at low rates, thereby boosting residential sales.”

Anshuman Magazine

Chairman & CEO, India, South-East Asia, Middle East & Africa, CBRE