Welcoming the RBI’s decision to keep policy rates unchanged, the real estate sector said on Friday that the low interest rate regime on home loans would continue, helping to revive housing demand which has been hit hard in the past. past two months due to a second wave of the covid pandemic.
The industry demanded more measures to boost liquidity.
“RBI continues to maintain a dovish stance as it is crucial to mitigate the impact of the COVID pandemic,” CREDAI Chairman Harsh Vardhan Patodia said.
“Amending the ECLGS scheme and clear instructions to banks and other financial institutions on sanctioning funds to labor intensive sectors like real estate is the need of the hour,” he added. .
Naredco Chairman Niranjan Hiranandani, National Chairman of NAREDCO, said the RBI has kept benchmark rates unchanged which will benefit home loan borrowers.
“While this reflects a response to the challenges of the COVID-19 pandemic, it is a boon for home loan borrowers as floating retail lending rates continue to be at the lowest level in the past two decades. “, did he declare.
Sanjay Dutt, Managing Director and Chief Executive, Tata Realty and Infrastructure called the policy good news.
To revive the real estate market, he demanded the status of the industry for real estate, input credit, the authorization of FDI in the RTMI (ready to move in), a one-stop clearance mechanism at the level of the state and a lower GST on raw materials for the long term. sector growth.
Anshuman Magazine, President and CEO, India, Southeast Asia, Middle East and Africa, CBRE, said the RBI’s dovish stance will help sustain homebuyer sentiments which were strengthening ahead of the second vague.
“With the repo rate and reverse repo rate maintained at status quo, banks and NBFCs will continue to lend at discounted rates to homebuyers, supporting demand in the real estate sector” , he added.
Anarock Chairman Anuj Puri described the policy as positive for homebuyers.
“The continuation of this low interest rate regime is working very well for all borrowers as the high affordability environment is expected to continue for some time to come,” Puri said.
Amit Goyal, CEO of India Sotheby’s International Realty, said the policy effectively meant interest rates on home loans would continue to remain at historic lows.
“We believe that the RBI’s objective 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 maintain the repo rate is in line with expectations. He said the banking regulator should announce monetary support to the NHB to revive
growth in the real estate sector.
Knight Frank India MD Shishir Baijal said there was an urgent need to provide monetary policy support – due to both the ease of access and low cost of funds – to households and businesses.
Samantak Das, Chief Economist and Head of Research and REIS, JLL, said: “While competitive mortgage rates should provide long-term support for sustained housing growth, the overall economic recovery leading to the employment and income growth will be contributing factors for housing demand.”
Among NCR builders, Signature Global, which is dedicated to affordable housing, Chairman Pradeep Aggarwal has urged potential buyers to take advantage of low mortgage rates.
Amit Raj Jain, Head of Sales at BPTP Ltd, said: “The historic low interest rate on home loans is a boon for homebuyers and buyers should take advantage of it.”
Raheja Developers ED Nayan Raheja and Bhumika group MD Uddhav Poddar researched industry-specific measures to drive demand.
Housing brokerage Square Yards CFO Piyush Bothra said the interest rate on home loans would remain stable at the current level.
Investors Clinic founder Honeyy Katiyal said interest rates on home loans need to 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.
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