RBI’s status quo brings cheer for real estate developers
Real estate developers heaved a sigh of relief after the RBI kept key policy rates unchanged and said any hike in the interest rate would have affected housing demand during the upcoming festival season.
“RBI’s decision to keep the repo rate unchanged is a relief to the developers, home buyers and real estate stakeholders at large. “However, the economy is too precariously poised for real estate to pull itself by its bootstraps. We hope in particular for decisive steps to end the credit freeze,” CREDAI’s National President Jaxay Shah said.
NAREDCO President Niranjan Hiranandani said RBI has kept rates unchanged but some banks have already hiked interest rates. He wondered whether banks will now reverse their recent hikes. Anshuman Magazine, Chairman, India and South East Asia, CBRE, said: “Any hike in repo rate would have impacted consumption sentiment and also the real estate sector. Also, the change in stance of the RBI from neutral to calibrated tightening is an indication of the intent of the RBI to keep inflation levels in check.” Anuj Puri, Chairman, ANAROCK, said it was “unexpected stance” on part of RBI and could be favourable for the real estate sector in the short term. However, he said it is a worrisome development from a macro-economic long term prospective.
JLL India CEO & Country Head Ramesh Nair said it is a welcome step for the real estate sector as it would give the much-needed impetus to the housing market which has been showing signs of revival in the last 6 months.
“For home buyers, the timing could not have been better as lending rates are not expected to increase from current levels. Besides providing a major fillip to buyer sentiment, RBI’s move should also translate into boosting demand,” Nair said. Knight Frank India CMD Shishir Baijal said: “While we are in a rising interest rate cycle now, the pause will provide a temporary relief to the home buyer sentiment and support the festive season demand.” Dhruv Agarwala, Group CEO, Housing.com, Makaan.com & PropTiger.com said this is a great news for home buyers who are considering taking advantage of lucrative offers from developers during the festive season.