Estate agents hail continued low interest rates on home loans in latest RBI MPC
The real estate sector received nothing significant in the recent RBI MPC, but real estate agents are reassured by the RBI’s decision to maintain the status quo in the repo rate. According to the realtors, “The apex bank is clearly confident about economic growth in the recent MPC. As the economy recovers from the pandemic, the central bank has pushed for a stable political environment. and 23, a gradual unwinding of liquidity, stable energy costs and the government’s handling of the pandemic will be essential for growth.”
Thanking the apex bank for maintaining its dovish stance, Pradeep Aggarwal, Founder and Chairman of Signature Global Group, Chairman of ASSOCHAM, National Property, Housing and Urban Development Council, said: “The low rate of Interest on home loans has been a crucial factor in real estate demand, and the RBI has helped the sector by maintaining the status quo. We suggest that buyers take advantage of the current situation as subsequent prices may rise under pressure from the increase in costs.
The RBI has maintained a low repo rate which would be helpful for the real estate sector. “We need to understand that real estate does not operate on its own but depends on the growth of all other sectors/industries. The dovish stance taken by RBI will boost the economic environment and also lead to a favorable situation for the real estate sector to face. increased demand for real estate, we urge state governments to reduce stamp duty as a gift to home buyers,” said Ar Nayan Raheja of Raheja Developers.
The value of real estate as an asset will continue for a long time and will strengthen over time as the industry begins to recover; low interest rates on mortgages have worked very well for the sector. Moreover, more pressure is needed with the support of the government. to bring back the influx of fence keepers to the market. Navdeep Sardana, President and Managing Director of Elite Landbase, said: “As of May 2020, the RBI has kept the repo rate unchanged which is understandable. Tight fiscal policy is counter-intuitive at a time when the focus is on growth and spending. , it is also a time when it is necessary to move from a budgetary approach focused on numbers to a more holistic and sectoral political roadmap In real estate, there is a pressing need for subsidies and tailor-made rebates to help the sector recover quickly We’ve seen how stamp duty reductions have boosted home sales in the past and similar measures can be the icing on the cake. Similarly, developer credit subsidies and the GST review on raw materials can also be very helpful and optimize the overall housing supply chain. “.
Estate agents believe that although real estate needs several measures, it will be good to implement the announcements made over the past few months to move forward. SKA Group Director LN Jha said: “As inflation is pegged at 5% (in the 2-6% safe zone), RBI’s decision to keep the repo rate unchanged at 4% was everything. very much in line with expected lines. Simultaneously, maintaining a dovish stance also bodes well for the emergence of a strong economy, off the path of sustained recovery. With the discovery of a new variant, These are crucial times that require a high degree of monetary and fiscal support and RBI is rightly looking after This decision will have a lasting impact by ensuring steady growth for the entire real estate industry and its auxiliaries.”
Uddhav Poddar, MD, Bhumika Group, said: “While the MPC would have maintained the status quo on policy rates, we would have hoped for a rate cut to lift sentiment, especially as clients began to regain their faith and have started marching towards making high-end purchases Lower EMIs are playing a vital role in rekindling demand and making real estate assets more attractive RBI has also raised the transaction limit to Rs 5 lakh from Rs 2 lakh for UPI payments for RBI’s Retail Direct program, which will provide a significant boost to this particular segment.”
“Although we have hoped for announcements specific to real estate, we recognize that the RBI must focus on all sectors to achieve economic development. Maintaining the repo rate in real estate will go a long way in retaining buyer sentiment. While a stable repo rate is appropriate, the need for industry-specific measures cannot be overlooked,” said Dhiraj Bora, Head – Marketing & Communications, Paramount Group.
Source: Stock market bulls
Real estate sector