The Reserve Bank of India’s (RBI) decision to keep policy rates unchanged will lead to continued low interest rates on home loans and support the continued recovery in housing demand, property developers and consultants say.
Welcoming the RBI’s policy, CREDAI Chairman Harshvardhan Patodia said that “RBI’s dovish stance on maintaining the repo and reverse repo rate is undoubtedly a step-by-step decision and cautious, especially at a time when the entire industry is carefully assessing the possible impact of the new Omicron wave.”
The continuation of the low interest rate regime on home loans should instill more confidence in homebuyers and support the current market and economic recovery which has been promising after a good holiday season, he said. -he adds.
Niranjan Hiranandani, Vice Chairman of NAREDCO and Managing Director of the Hiranandani Group, said the real estate sector will benefit from the low interest rates on home loans which continue following the RBI MPC decision.
“Homebuyers should make the most of the historically low mortgage interest rate regime,” he said. Tata Realty and Infrastructure MD and CEO Sanjay Dutt said the decision to keep rates unchanged would provide an opportunity for a low interest regime, which would support the residential market and allow buyers to benefit from low home loan rates from all the times to buy their dream homes.
“Furthermore, real estate has been at the forefront of driving the economy on a path to growth at a high rate, and this move will encourage buyers to opt for their dream home and invest. in this one because the rate change window has been shortened,” he added. he added.
Puravankara Managing Director Ashish R Puravankara said recent quarters have seen robust sales in the property sector across different asset classes. “The dovish stance has fueled the rise of ambitious buyers, who can now apply for loans, taking advantage of the all-time low interest rate regime. This status quo is particularly relevant now to maintain buyer confidence amid concerns of the novel variant COVID-19,” Puravankara added.
Omaxe Ltd MD Mohit Goel said the move would support the recovery of businesses sensitive to interest rate movements. “Low lending rates will be the most important factor in further increasing economic growth and reviving stagnant business activities, including real estate.”
Santosh Agarwal, chief financial officer and chief executive of Alpha Corp, said the announcement will certainly bring joy to the housing sector and help boost the economy. “Keeping the dovish stance will allow banks to lend home loans at the current level, which is a most promising factor for buyers’ decisions,” Agarwal said.
Among real estate consultants, Anshuman Magazine, CEO (India, Southeast Asia, Middle East and Africa) of CBRE, said the stable position would bode well for mortgage borrowers and the Indian real estate market.
Amit Goyal, CEO of India Sotheby’s International Realty, said the interest rate on home loans would remain at the current level of less than 7% per annum. “We expect demand in the housing market to continue to improve. All eyes are now on the upcoming budget. This will boost the property sector if the government improves deductions on home loans in the 2022 budget. “, he added.
Dhruv Agarwala, Group CEO of Housing.com, Makaan.com and Proptiger.com, said the RBI’s decision to keep policy rates unchanged is in line with expectations. “While home sales have shown steady improvement over the past two quarters, much of this can be attributed to the historically low interest rate regime. Thwarting the current momentum would have been very detrimental to the overall economic recovery” , did he declare.
Anarock Chairman Anuj Puri said the unchanged repo rates will help maintain the status quo on the prevailing low interest rate regime for some time to come. “This is working well for all home loan borrowers as the affordability environment will continue,” Puri said.
Knight Frank India Chairman and Managing Director Shishir Baijal said the low interest rate regime has been instrumental in boosting the real estate sector over the past six quarters. “The RBI’s efforts, along with other demand-stimulating measures, have helped revive demand that had languished for nearly seven years before 2020. Maintaining the dovish stance will help advance the sector’s cause.” , he added.
Colliers India CEO Ramesh Nair said the unchanged repo rate will continue to improve sentiment in the property sector. “The housing sector is already seeing a recovery in sales, driven by low mortgage rates, pent-up demand and stable prices,” he added.
Samantak Das, Chief Economist and Head of Research and REIS (India) at JLL, said the property sector stands to benefit from a low mortgage rate regime, coupled with duty waivers, realistic property prices and attractive offers leading to affordable synergy.