The Reserve Bank of India (RBI) has maintained the policy rate at 4% and voted unanimously to keep the status quo with an accommodating stance. The RBI’s decision to keep key policy rates unchanged means that low-interest rates on home loans will continue, but real estate developers believe that more steps directed at real estate would have helped the sector.
Dhiraj Jain, Director, Mahagun Group said, “It would have led to a ray of hope if the sector received any benefit today. The apex bank kept the repo rate unchanged at 4%, but we are still expecting some support from the Union government to help the reeling sector enter a favourable scenario, which promises stable and long-term growth.”
After being impacted by COVID last year, sales reached 90 per cent of the pre-COVID levels in Q1 2021 due to pent-up demand, as well as a low home loan interest rate. Ashok Gupta, CMD, Ajnara India Ltd said, “The central bank has stepped up its efforts to ensure liquidity in the system with another GSAP worth Rs 1.2 lakh crore planned for this fiscal year. The RBI is working towards ensuring the growth of the economy, which will help the sector also. Though we were expecting something for real estate, keeping the repo rate unchanged is good for the sector. The low home loan interest rate will continue, which would mean positive response from the buyers.”
The sector was hopeful as the second wave has affected the sector, and the situation demanded that real estate get some attention. Vijay Verma, CEO, Sunworld Group, said, “The RBI has played a pro-active role and has taken multiple measures for various industries and sectors. While the real estate sector needs several measures, and we expect a push from RBI to the banks to disburse loans to the sector”.
Realtors feel that they expect increased sales in the coming quarter as home loan interest rates remain low. Kushagr Ansal, Director, Ansal Housing & President, CREDAI Haryana, said, “The strong momentum would be maintained as the low home loan rates stay coupled with various developer schemes. It will also serve as a springboard for real estate development in the coming months as the economy recovers from the effects of the second wave. The optimistic economic growth outlook may boost the housing demand.”
Harvinder Singh Sikka, MD, Sikka Group said, “The value of the real estate as an asset will continue for long and strengthen with time as the sector begins to recuperate, low home loan interest rates have worked well. Additionally, more push is needed with support from government to bring back the influx of fence-sitters in the market.”
Talking about the need to aid buying process, Dhiraj Bora, Head Marketing & Communication, Paramount Group said, “Reduced home loan interest rates and stamp duty reductions by few states have bode well for the realty. The real estate markets such as Delhi NCR also expect similar stamp duty reductions to provide further momentum to the increased demand.”