Realtors hail continued low mortgage interest rates in latest RBI MPC

The real estate industry did not receive anything significant in the recent RBI MPC, but real estate agents are comforted by the RBI’s decision to keep the repo rate status quo. According to realtors, “apex bank is clearly confident about economic growth in the recent MPC. As the economy recovers from the pandemic, the central bank has pushed for a stable political environment. energy costs and government management of the pandemic will be critical to growth. “

Thanking apex bank for maintaining its accommodating stance, Pradeep Aggarwal, Founder and Chairman of Signature Global Group, Chairman of ASSOCHAM, National Council for Real Estate, Housing and Urban Development, said: “The low rate of Interest on home loans has been a demand by real estate, and the RBI has helped the industry by maintaining the status quo. We suggest that buyers take advantage of the current situation as prices may increase later under the pressure of increasing costs. “

The RBI has kept a low repo rate that would be helpful for the real estate industry. “We have to understand that real estate does not work alone but depends on the growth of all other sectors / industries. The accommodative stance taken by RBI will stimulate the economic environment and lead to a favorable situation for the real estate sector as well. in the face of increased demand for real estate, we are urging state governments to reduce stamp duties in order to be a giveaway for home buyers, ”said Ar Nayan Raheja of Raheja Developers.

The value of real estate as an asset will continue for a long time and will strengthen as the industry begins to recover; low interest rates on home loans have worked very well for the industry. In addition, more pressure is needed with the support of the government. to bring the influx of fence guards back into the market. Navdeep Sardana, Chairman and CEO of Elite Landbase, said: “As of May 2020, the RBI has kept the repo rate unchanged, which is understandable. Tight fiscal policy is counterintuitive in an age when the focus is on growth and spending. However, this is also a time when there is a need to move from a numbers-centric tax approach to a more holistic and sectoral policy roadmap. In real estate, there is an urgent need for tailor-made grants and rebates to help the industry recover quickly. We have seen how reducing stamp duty has boosted home sales in the past and similar measures can be icing on the cake. Likewise, developer credit subsidies and revised GST on raw materials can also be very helpful and optimize the overall housing supply chain.

Real estate agents believe that while real estate needs several measures, it will be good to implement the announcements made over the past few months to make progress. SKA Group Director LN Jha said: “With inflation set at 5% (in the safe zone of 2-6%), the RBI’s decision to keep the repo rate at 4% was completely in line with expectations. At the same time, maintaining an accommodative position also bodes well for the emergence of a strong economy, off the path of sustained recovery. This decision will have a lasting impact by ensuring consistent growth for the entire real estate sector and its annexes.

Uddhav Poddar, MD, Bhumika Group, said: “While the MPC should maintain the status quo on policy rates, we would have hoped for a rate cut to elevate sentiment, especially when clients started to regain confidence and started walking towards high-end shopping. Lower IMEs play a vital role in rekindling demand and making real estate assets more attractive. RBI has also increased the transaction limit to Rs 5 lakh from Rs 2 lakh for UPI payments for RBI’s Retail Direct program, which will give a significant boost to this particular segment. “

“While we have hoped for real estate specific announcements, we recognize that the RBI must focus on all sectors to achieve economic development. Maintaining the repo rate in real estate will help a lot in terms of sustaining Buyer Sentiment While a stable repo rate is appropriate, the need for industry specific measures cannot be overlooked, ”said Dhiraj Bora, Marketing and Communications Manager, Paramount Group.