Low Interest Rate Regime For Home Loans Will Continue: Realtors On RBI Policy

Welcoming the RBI’s decision to keep policy rates unchanged, the real estate industry said on Friday that the low rate regime on home loans would continue, contributing to the recovery in housing demand which has been hit hard in the past two years. recent months due to a second wave of the covid pandemic.

The industry demanded more measures to increase liquidity.

“RBI continues to maintain an accommodating position as it is crucial to mitigate the impact of the COVID pandemic,” CREDAI Chairman Harsh Vardhan Patodia said.

“The modification of the ECLGS program and clear instructions to banks and other financial institutions on granting funds to labor-intensive sectors like real estate is the need of the moment,” he added. .

Naredco Chairman Niranjan Hiranandani, National Chairman of NAREDCO, said the RBI has kept benchmarks unchanged, which will benefit mortgage borrowers.

“While it reflects a response to the challenges of the COVID-19 pandemic, it is a boon for mortgage borrowers, as floating rates on retail loans continue to be at an all-time low over the past decade. over the past two decades, he said.

Sanjay Dutt, Managing Director and CEO, Tata Realty and Infrastructure called the policy good news.

To revive the real estate market, he demanded the status of industry for real estate, input credit, allowing FDI in RTMI (loan to move in), a one-stop-shop clearance mechanism at the state level and a reduction GST on raw materials for the long term sustainable growth of the sector.

Anshuman Magazine, chief executive officer for India, Southeast Asia, Middle East and Africa, CBRE, said the RBI’s dovish stance will help maintain the sentiments of homebuyers who strengthened before the second wave.

“With the repo and reverse repo rate remaining at the status quo, banks and NBFCs will continue to provide discounted loans to homebuyers, thus supporting demand in the real estate sector,” he said. he added.

Anarock chairman Anuj Puri described the policy as positive for homebuyers.

“Keeping this low interest rate regime works very well for all borrowers, as the high affordability environment is likely to continue for a bit longer,” Puri said.

Amit Goyal, CEO of India Sotheby’s International Realty, said the policy actually means interest rates on home loans will continue to stay at historically low levels.

“We believe that the RBI’s goal of maintaining liquidity and supporting the country’s economic growth through lower interest rates will be crucial for the recovery from the second wave of the pandemic,” Goyal added.

Dhruv Agarwala, Group CEO, Housing.com, Makaan.com & Proptiger, said the RBI’s decision to keep the repo rate was in line with expectations. He said the banking regulator should announce monetary support to the NHB to revive

growth of the real estate sector.

Knight Frank India Managing Director Shishir Baijal said there was an urgent need to provide monetary policy support – due to both the easy availability and lower cost of funds – to households and companies.

Samantak Das, Chief Economist and Head of Research and REIS, JLL, said: “While competitive mortgage rates are expected to support sustained real estate growth in the long term, the overall economic recovery leading to employment and income growth will be contributing factors. for housing demand.

Among the builders of NCR, Signature Global, which deals with affordable housing, President Pradeep Aggarwal has called on potential home buyers to take advantage of low mortgage rates.

Amit Raj Jain, Sales Manager at BPTP Ltd, said: “The historic low interest rate on home loans is a boon for homebuyers and homebuyers should take advantage.

Raheja ED developers Nayan Raheja and Bhumika MD Uddhav Poddar Group have sought industry specific measures to boost demand.

Square Yards real estate brokerage firm CFO Piyush Bothra said the mortgage interest rate will remain stable at current levels.

Investors Clinic founder Honeyy Katiyal said interest rates on home loans must be lower for a longer period.

Kaushal Agarwal, chairman of The Guardians Real Estate Advisory, said lending rates should be further reduced until demand reaches pre-COVID levels.

(Only the title and image of this report may have been reworked by Business Standard staff; the rest of the content is automatically generated from a syndicated feed.)

Bernadine J. Perkins