The Reserve Bank of India’s (RBI) decision to keep policy rates unchanged will keep interest rates on mortgage lending low and support the ongoing recovery in housing demand, according to property developers and consultants.
Welcoming RBI policy, CREDAI Chairman Harshvardhan Patodia said that “the RBI’s accommodating stance on keeping the reverse repo and reverse repo rate unchanged is undoubtedly a gradual and prudent step, especially at a time when the entire industry is carefully assessing the possible impact of the new Omicron wave. “
Maintaining a low interest rate regime for home loans should instill more confidence in homebuyers and support the ongoing market and the promising economic recovery after a good holiday season. he added.
Niranjan Hiranandani, vice chairman of NAREDCO and general manager of the Hiranandani group, said the real estate sector will benefit from the low interest rates on home loans that persist following the RBI MPC decision.
“Buyers should make the most of the historic regime of low mortgage interest rates,” he said. Tata Realty and Infrastructure MD and CEO, Sanjay Dutt, said the decision to keep rates unchanged would provide the opportunity for a low interest regime, which would support the residential market and allow buyers to take advantage of mortgage rates. the lowest to buy the house of their dreams.
“In addition, real estate has been at the forefront of driving the economy on a path of growth at a high rate, and this move will encourage home buyers to opt for and invest in their homes. dreams because the window for the rate change has been shortened, ”he added.
Puravankara Managing Director Ashish R Puravankara said recent quarters have seen strong sales in the real estate 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 historic low interest rate regime. This status quo is particularly relevant now for maintaining buyer confidence amid concerns of the new COVID-19 variant, ”Puravankara added.
Omaxe Ltd chief executive Mohit Goel said the move would support the recovery of companies sensitive to interest rate fluctuations. “Low credit 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 executive director of Alpha Corp, said the announcement will certainly bring joy to the housing industry and help boost the economy. “Maintaining the dovish position will allow banks to lend mortgage loans at current levels, which is a most promising factor for buyers’ decisions,” Agarwal said.
Among real estate consultants, Anshuman Magazine, President and CEO (India, Southeast Asia, Middle East and Africa) of CBRE, said this strong stance would bode well for mortgage borrowers and the real estate market. Indian.
Amit Goyal, CEO of India Sotheby’s International Realty, said the mortgage interest rate will 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 next budget. This will boost the real estate sector if the government increases deductions on home loans in the 2022 budget. “, he added.
Dhruv Agarwala, CEO of Housing.com Group, Makaan.com and Proptiger.com, said the RBI’s decision to keep key rates unchanged was as expected. “While home sales have shown steady improvement over the past two quarters, this can be attributed in large part to the record interest rate regime. Shaking up the current momentum would have been very damaging to the overall economic recovery,” he said. he declared.
Anarock chairman Anuj Puri said the unchanged pension rates would help maintain the status quo on the current low interest rate regime for some time to come. “It works well for all home loan borrowers as the affordability environment will continue,” Puri said.
Knight Frank India Chairman and CEO Shishir Baijal said the low interest rate regime has been instrumental in reviving the real estate sector over the past six quarters. “The RBI’s efforts, along with other demand stimulus measures, have helped revive demand that had languished for nearly seven years before 2020. Maintaining the accommodative stance will help advance the cause of the industry.” , he added.
Colliers India CEO Ramesh Nair said the unchanged repo rate will continue to improve sentiment in the real estate industry. “The housing sector is already experiencing 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 real estate industry should benefit from a low mortgage rate regime, coupled with duty exemptions, realistic real estate prices and to attractive offers leading to affordable synergy.