Realty Industry upbeat on RBI policy announcement
Real estate developers and consultants on Friday said that RBI’s decision to keep key policy rates unchanged means low interest rate on home loans will continue, but felt that further reduction could have boosted housing demand which showed signs of recovery in the last few months.
RBI Governor Shaktikanta Das said the MPC (Monetary Policy Committee) voted unanimously to leave the policy repo rate unchanged at 4 per cent. In his statement, Das also mentioned that data for sales and new launches of residential units in major metropolitan centres reflect a renewed confidence in the real estate sector.
Investors Clinic Founder Honeyy Katiyal said, “This indicates that real estate loan interest rates will not increase anytime soon. This added with the budget announcement of tax holiday in affordable housing segment will boost and strengthen real estate sentiments in the next quarter. The sector has been optimistic in the last quarter too, due to the growing demand from consumers in housing real estate, propelled by festive season and year-end sales.”
Sanjay Dutt, MD & CEO, Tata Realty and Infrastructure, welcomed the apex bank’s decision to keep policy rates unchanged for the fourth time in a row. “Maintaining this accommodative outlook is extremely crucial, especially with the green shoots of recovery being visible now”.
Anarock Chairman Anuj Puri said the real estate industry always aspires for reduced interest rates. “Housing demand is reviving, and this demand needs to be fostered. However, the RBI’s current stance is absolutely justified given the unique circumstances. We are certain that rates will be adjusted favourably once the pandemic exigencies ease,” he said.
Mr. Shiv Parakh, Founder, hBits said, “The central bank once again has kept the policy rates unchanged. It is a good news for real estate sectors. This shows that the rate of interest for home buyers will stay steady and the momentum will keep on this front. The move was expected and better liquidity will help commercial real estate developer with the cost of capital going down. The banks will also be ready to invest in quality commercial projects.”