 "Low interest rate on home loans to boost housing sales, say realtors")
Real estate developers on Friday hailed the RBI's decision to keep policy rates unchanged, saying the low interest rate regime will help in maintaining sales momentum in the residential sector.
Harsh Vardhan Patodia, president of realtors' body CREDAI, said the RBI's decision of keeping the repo rate unchanged at the historic low of 4 per cent will bring economic development and growth in the country, especially after the impact of COVID-19 on several sectors.
"The current repo rate will be beneficial for the real estate sector as home buyers will continue to witness ease in home loan rates. We appreciate RBI's faith in maintaining liquidity to keep the real estate industry optimistic about growth in the future, especially after the sudden impact on the real estate players followed by the rising costs of raw materials," he said.
Patodia hoped that the RBI would continue to maintain the status quo in the coming months too, as it can be a game changer for all sectors contributing to the country's GDP.
Naredco Vice Chairperson Niranjan Hiranandani said: "The current low home loan interest rate and individual housing loans' risk weight guidelines, which have been extended till March 31, 2023, will continue to be the 'demand catalyst' in the short term, ensuring that sales velocity remains high despite the brief upwards revision in pricing of housing."
Nayan Raheja of Raheja Developers said, "The EMI will be unaffected by this decision. The continuation of a positive attitude as the economy emerges from its extended recovery route bodes well for a strong economy to rise."
This decision will have a long-term impact on the real estate industry, ensuring that it continues to expand, he added.
"The RBI's decision to retain the repo rate at 4 per cent was expected. The announcement will definitely help the realty sector to accelerate growth, and certainly improve the market sentiments. This has been done to maintain the accommodative stance, which will enable banks to lend home loans at the current level, which is a crucial factor to encourage homebuying decisions," said Santosh Agarwal, CFO and Executive Director, Alpha Corp.
Saransh Trehan, Managing Director, Trehan Group, said the RBI decision to extend the rationalised norms with regard to risk weightage on housing loans by one year till March 2023 will provide a boost to the residential real estate market by encouraging banks to make available loans to prospective homebuyers at affordable rates.