RBI decision According to property developers and consultants, the Reserve Bank’s decision to maintain key policy rates will result in continued low-interest rates on home loans and support the ongoing recovery of housing demand.
According to property developers and consultants, the Reserve Bank’s decision to maintain key policy rates will result in continued low-interest rates on home loans and support the ongoing recovery of housing demand. “RBI’s accommodating stance on keeping the repo and reverse repo rates unchanged is undeniably a progressive and cautious move,” CREDAI President Harshvardhan Patodia said, “, especially in times when the entire industry is carefully assessing the possible impact of the new Omicron wave.”
He added that the continuation of low home-loan interest rates is likely to boost home buyers’ confidence and support the ongoing market and economic recovery, which has been promising following a successful holiday season. The real estate sector will benefit from the low home loan interest rates that will continue as a result of the RBI MPC’s decision, according to Niranjan Hiranandani, Vice Chairman of NAREDCO and MD of the Hiranandani Group.
“Buyers should take advantage of historically low home loan interest rates,” he said. The home loan interest rate will remain below 7% per year, according to Amit Goyal, CEO of India Sotheby’s International Realty. “We expect the housing market to continue to improve. The upcoming budget has everyone’s attention. If the government increases deductions for home loans in Budget 2022, it will boost the real estate sector.” The low mortgage rates, according to Sandeep Runwal, President of NAREDCO-Maharashtra, will last at least until the end of the year. “This will provide the necessary fuel for the economy’s and real estate industry’s growth.”
The RBI’s decision to keep key policy rates unchanged as expected, according to Dhruv Agarwala, Group CEO of Housing.com, Makaan.com, and Proptiger.com. “Much of the improvement in home sales over the last couple of quarters can be attributed to the record low-interest-rate environment. It would have been highly detrimental to the overall economic recovery to disrupt the current momentum “he stated According to Ashwinder R Singh, CEO Residential, Bhartiya Urban, this will ensure that healthy residential real estate sales continue shortly, as long as home loan rates remain low.
The unchanged repo rates, according to Anarock Chairman Anuj Puri, will help keep the current low-interest-rate regime in place for a while longer. “This is good for all home loan borrowers because the affordability environment will continue,” Puri said. The low-interest-rate regime, according to Shishir Baijal, Chairman and Managing Director of Knight Frank India, has been instrumental in reviving the real estate sector in the last six quarters.
“The RBI’s efforts, combined with other demand-stimulating measures, have helped to resurrect demand that had been stagnant for nearly seven years before 2020. The sector’s cause will be furthered if the accommodating stance is maintained “Added he. The unchanged repo rate, according to Colliers India CEO Ramesh Nair, will continue to improve sentiment in the real estate sector. “The housing sector is already experiencing a resurgence in sales, owing to low home loan rates, pent-up demand, and stable prices,” Nair said.
The low home loan interest rate regime, according to Ram Raheja, Director of S Raheja Realty, has played a significant role in stimulating India’s real estate sector, particularly during the festive season. While rising commodity prices have put upward pressure on input material costs, the economy’s low interest rate has been a major contributor to the housing sector’s recovery, according to Rohit Poddar, Managing Director, Poddar Housing and Development. Lower home loan interest rates, according to Pradeep Misra, MD of New Modern Buildwell, will help the real estate sector, particularly in tier 2 and 3 cities.
“Because interest rates, along with house pricing, are two of the most important factors influencing people’s buying decisions,” he said, “we expect reasonable demand for housing in the coming months.” The RBI’s policy stance, according to Investors Clinic founder Honey Katiyal, has been supportive of residential real estate, allowing realtors to clear inventory. According to Kaushal Agarwal, Chairman of The Guardians Real Estate Advisory, “the all-time low-interest rate regime has boosted housing demand and helped the economy get back to pre-Covid levels.” The decision, according to Shiv Parekh, founder of hits, a company that facilitates fractional property ownership, will benefit the real estate sector.
The unchanged repo rate, according to Harresh Mehta, Chairman and Managing Director of Rohan Life Capes, will benefit home loan borrowers and the real estate market in general.