The country's leading realty company DLF today said it did not expect any interest rate cut in the Reserve Bank of India's (RBI) quarterly review of monetary policy tomorrow.
"I do not see this [interest rate cut]... Not this time, near future yes but not tomorrow," DLF India Vice Chairman and MD Mohit Gujral told reporters here today.
The RBI will review the monetary policy tomorrow amid signs of slowing down of the economy.
Maintaining that DLF continued to sell properties across the country when the rate of interest were too high, Gujral asserted that there was a huge gap between demand and supply of houses prevailing in the market which supported the real estate market.
"DLF even sold real estate when interest rates were 18 per cent. So I do not think that in India the real demand and supply gap is so high that it certainly impact sentiments but does not stop sentiment... We are keeping our finger crossed," he said.
Asked about recession in economy, Gujral said recession was predominately a perception than realty. "If you talk about recession, it is more of at the moment in India is predominantly a perception... In anyway markets do not erode," he said.
Last month, property consulting firm CB Richard Ellis (CBRE) had said that sales volume of residential properties had dropped by 10-15 per cent in major cities on account of rising home loan rates have dropped the sales volume for residential houses in major cities.
Gujral said DLF stayed ahead in real estate market despite interest rate going up considerably. "So far we have seen many interest rates [going up in] last one year or two years progressively. We stayed ahead of game," he said.
The country’s largest real estate in terms of revenue has approximately 238 million square feet of completed development and 243 million square feet of planned projects with presence in 30 cities.
