Expected decision, a boost to the sector; say realty players on unchanged key rates

The following are the reactions of key stakeholders of the real estate industry to the RBI decision to keep key lending rate unchanged for the eighth time in a row. 

“The RBI’s decision has come at an opportune time, with the country gearing up for the festive season which often sees a spurt in residential sales. As loans would remain cheap, we expect residential sales to further increase in the coming months. The RBI’s focus on reviving and sustaining growth through its accommodative stance while keeping an eye on inflation levels is expected to accelerate the economic recovery.”

Anshuman Magazine

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

“We welcome RBI’s status quo on policy rates. This will mean a continuation of low home loan rates which will keep the demand momentum for homes going. In the last couple of months, we have witnessed a further reduction in interest rates of home loans to 6.5 per cent per annum by leading financial institutions.”

Amit Goyal

CEO, India Sotheby’s International Realty

“For the eighth consecutive time, the Reserve Bank of India has kept repo rates unchanged at 4 pc. We predicted that the repo rate will remain constant to boost consumption in the ongoing festive period. It will go a long way in steering housing sales. Several banks have already lowered their home loans rates by a stable repo rate since September 2021. Overall, it is a good time for homebuyers who can avail of low home loan rates, along with steady prices”.

Ramesh Nair

CEO, India and Market Development, Asia, Colliers

“As expected, RBI maintained the monetary policy pause, keeping the repo rate unchanged at 4 pc and reverse repo rate at 3.35 pc. In short, for homebuyers the low home loan interest rates regime will continue in the market and help foster housing demand during the ongoing festive season. Notably, this is a period when housing sales usually surge on the back of attractive offers by developers and lending banks.”

Anuj Puri

Chairman, ANAROCK Group

“As expected, the monetary policy committee of the RBI has stayed away from changing the benchmark lending rates for the eight consecutive time. Also, the continued accommodative stance reflects its confidence in progressive opening of the economy and the remarkable progress on the vaccination front.  Although the real estate segment does not derive extra benefit from the unchanged rate scenario, the festival buying cycle and rising affordability for home purchases augur well for residential real estate.”

Anurag Mathur

CEO Savills India

“From a housing perspective, the RBI decision translates into historic low home loan interest rates continuing with positive effects including a boost to the festive sentiment, which should result in higher quantum of sales. The outcome of the RBI policy meet was broadly in line with expectations. Despite the rate hikes by other central banks and guidance by US Fed to reduce its bond purchases from November, the RBI has not been in a hurry to act on rates.”

Niranjan Hiranandani

National Vice-Chairman, Naredco

 “The RBI decision to the repo rate unchanged will immensely help the real estate sector and the market to accelerate its growth. The industry has received immense support from policymakers that has helped to fortify investments and consumer’s faith in the market. The recent quarters have brought great cheer for the sector and huge sales and enquiries are happening across sectors. The festive season mixed with pent-up demand, low home loan rates are setting a jubilant mood. As economic activities escalate further, promising results are expected in the coming quarters”

Pankaj Bansal

Director, M3M

“We are delighted that RBI has continued with its accommodative stance and has kept the REPO Rates unchanged at 4%. The major market indicators currently suggest that the economic activities are gaining momentum, which is also imminent with the real estate sector.  We are confident that the accommodative stance will continue to positively impact the interest of homebuyers and encourage more buyers to make property purchases.”

Ashish R. Puravankara

MD, Puravankara Limited

“The RBI’s decision was much anticipated and we whole-heartedly welcome it. The announcement has come at the onset of the festive season which certainly brings cheer for the housing sector. In the last couple of quarters, the real estate sector has witnessed great traction and performed really well. The improved market sentiments and increased traction indicate the sector moving on an upward growth trajectory. Maintaining the accommodative stance will enable the banks to lend home loans at the current level which is a most encouraging factor for homebuyers’ decisions.”

Santosh Agarwal

CFO & Executive Director, Alpha Corp