Realtors welcome RBI policy; expect sales to increase 40 percent in October-December on low rates- The New Indian Express
NEW DELHI: The real estate industry on Friday welcomed the RBI’s decision to keep policy rates unchanged, saying mortgage interest rates will remain at historically low levels and home sales could rise to as high as 40 % during this festival quarter.
The Reserve Bank of India (RBI) decided to keep the benchmark interest rate unchanged at 4%. This is the eighth consecutive time that the RBI has maintained the status quo. “The RBI’s decision to keep the repo rate at 4% and the repo rate at 3.55% is a welcome move. said Vardhan Patodia.
“While inflation has been better than expected with the onset of the holiday season and the RBI rates being kept at the status quo, we look forward to increased banker support on home loans to boost mortgage lending. festive sales, ”he said.
NAREDCO-Maharashtra Chairman Ashok Mohanani said interest rates will stay at an all time high for some time and now is the best time to buy homes.
Anshuman Magazine, chief executive officer, India, Southeast Asia, Middle East and Africa, CBRE, said he expects residential sales to continue increasing in the coming months as home loan rates would remain cheap.
Anarock Chairman Anuj Puri said, “In summary, for homebuyers, the low mortgage interest rate regime will continue in the market and help boost demand for housing during the downturn season. celebrations in progress. This is particularly a period when home sales increase attractive offers from developers and lending banks. “The current festive quarter will see at least an annual increase of 35 to 40% in overall home sales in the 7 main cities by compared to the same period in 2020, he said.
In the fourth quarter of 2020, the top seven cities recorded total home sales of nearly 50,900 units. Colliers India CEO Ramesh Nair said: “This will go a long way in guiding home sales. Several banks have already lowered their mortgage rates from a stable repo rate since September 2021. Overall , now is a good time for homebuyers who can take advantage of low mortgage rates, as well as stable prices. “
Welcoming the RBI’s decision, India Sotheby’s International Realty CEO Amit Goyal said: “This will mean continued low mortgage rates which will keep the momentum in housing demand going.” Knight Frank India CMD Shishir Baijal said the decision to maintain the status quo on key rates is important as it comes at the start of the holiday season.
The RBI’s dovish stance will allow banks to continue providing home loans at current levels, he added.
Baijal said there has been a fundamental shift in buyers’ expectations and attitudes towards home ownership, which has allowed the residential real estate industry to perform very well across all segments.
Vikas Wadhawan, group chief financial officer, Housing.com, Makaan.com and Proptiger.com, said interest rates on home loans will remain at historically low levels during the holiday season, which is crucial for the revival of the housing sector as well as for the economy.
“Low mortgage rates coupled with festive developer offers will significantly boost demand this quarter. We call on all states to reduce stamp duties on property registration until December. This could be a game-changer,” a- he declared.
Samantak Das, chief economist and head of research, JLL India, said the RBI’s decision to keep policy rates unchanged should be key policy support to foster sustained growth in the economy.
Signature Global President Pradeep Aggarwal said: “Customers should take advantage of the current situation as prices may increase in the future due to rising raw material costs, while Central Park CMD Amarjit Bakshi said that the decision to maintain the repo rate will help a lot in terms of retaining buyer sentiment.
Gurugram-based M3M director Pankaj Bansal said the RBI’s move would help the real estate market accelerate its growth.
“Maintaining the accommodative position will allow banks to lend mortgage loans at current levels, which is a most encouraging factor for buyers’ decisions,” said Santosh Agarwal, CFO and CEO of Alpha Corp.
Silverglades Group CEO Anubhav Jain said the holiday season has started on a good note and demand for housing is expected to increase given the low interest rates on home loans and the improving economic scenario.
New Modern Buildwell – a real estate company with projects in Varanasi and Allahabad – MD Pradeep Misra said mortgage interest rates will continue to stay low and this will help the real estate industry, especially in Tier 2 cities and 3.
He expected a sharp increase in demand for housing during the holiday season. Ram Raheja, director and general manager and design at S Raheja Realty, said the real estate industry is expected to continue to benefit from the pass-through of low benchmark lending rates to end consumers, especially in the residential segment.
Runwal Group MD Sandeep Runwal said low mortgage rates would continue at least for some time to come or perhaps until the end of the year.
However, Investors Clinic founder Honeyy Katiyal said the RBI should have announced a rate cut to support demand in the real estate sector for the upcoming festival season.
