New Delhi: According to real estate developers, RBI should consider reducing interest rates on home loans and reducing the repo rate in the next monetary policy to boost housing demand.
The Reserve Bank of India (RBI) did not make any change in the repo rate on Friday.
Commenting on the decision, Boman Irani, national president of CREDAI, the apex body of real estate companies, said the country achieved high economic growth in the last financial year due to the contribution of all sectors, including real estate.
“Combined with other healthy macro-economic indicators and the CPI (Consumer Price Index), which recorded an 11-month low of 4.83 per cent last April, the RBI has a sustained view to further lift this overall economic growth. There is a strong opportunity to provide a formidable platform across industries,” he said.He said the RBI in the next monetary policy should "consider cutting repo rates for the first time after February 2023 and offering lower lending rates which will further boost consumer spending."
Pradeep Agarwal, chairman of real estate firm Signature Global, said the RBI has kept rates steady for the eighth consecutive time, possibly due to high food inflation despite the overall CPI falling within their target range.
"If inflation continues to decline, economists expect a rate cut of 25-50 basis points in the second half of the fiscal year. Lower interest rates could further boost the real estate sector, which is already booming," Aggarwal said. “Experiencing strong market demand from end users.” ,
Mohit Jain, managing director, Crisumi Corporation, said housing demand remains strong, especially in the luxury and high-end segments."RBI's status quo on the policy front is expected to continue the momentum. However, with a possible rate cut, the entire real estate market may see additional upside," Jain said.
“The RBI decision to keep the repo rate at 6.50 per cent is a strategically good move that reinforces stability and confidence in the real estate market,” said Ashwinar R Singh, CEO, Residential at Bharatiya Urban.
Trident Realty Group Chairman SK Narwar said the RBI decision will help maintain the momentum in real estate sales, while Trehan IRIS ED Abhishek Trehan said stability in the interest rate regime will help the sector.
Ramani Shastri, Chairman and MD, Sterling Developers, said, “RBI's status quo stance is welcome to boost overall market confidence.With the economy improving and all signs being positive, there is no hesitation among home buyers to invest in residential real estate property for long-term returns.
Gurmit Singh Arora, national president of the Indian Plumbing Association, felt that high mortgage rates were affecting affordability.
Arora said, "...although the prevailing situation has created an illusion of stability and market predictability in the home loan market, the prolonged high interest rate regime is pushing up expenses in terms of affordability."
County Group director Amit Modi said the move is beneficial for both developers and potential buyers interested in investing in the area.Prashant Sharma, Chairman, NAREDCO Maharashtra, said, “We welcome the decision of the Reserve Bank of India to maintain its current policy rates amid the backdrop of volatile food prices, ongoing geopolitical tensions and the extended pause on interest rates by the Federal Reserve. "
The Reserve Bank of India (RBI) did not make any change in the repo rate on Friday.
Commenting on the decision, Boman Irani, national president of CREDAI, the apex body of real estate companies, said the country achieved high economic growth in the last financial year due to the contribution of all sectors, including real estate.
“Combined with other healthy macro-economic indicators and the CPI (Consumer Price Index), which recorded an 11-month low of 4.83 per cent last April, the RBI has a sustained view to further lift this overall economic growth. There is a strong opportunity to provide a formidable platform across industries,” he said.He said the RBI in the next monetary policy should "consider cutting repo rates for the first time after February 2023 and offering lower lending rates which will further boost consumer spending."
Pradeep Agarwal, chairman of real estate firm Signature Global, said the RBI has kept rates steady for the eighth consecutive time, possibly due to high food inflation despite the overall CPI falling within their target range.
"If inflation continues to decline, economists expect a rate cut of 25-50 basis points in the second half of the fiscal year. Lower interest rates could further boost the real estate sector, which is already booming," Aggarwal said. “Experiencing strong market demand from end users.” ,
Mohit Jain, managing director, Crisumi Corporation, said housing demand remains strong, especially in the luxury and high-end segments."RBI's status quo on the policy front is expected to continue the momentum. However, with a possible rate cut, the entire real estate market may see additional upside," Jain said.
“The RBI decision to keep the repo rate at 6.50 per cent is a strategically good move that reinforces stability and confidence in the real estate market,” said Ashwinar R Singh, CEO, Residential at Bharatiya Urban.
Trident Realty Group Chairman SK Narwar said the RBI decision will help maintain the momentum in real estate sales, while Trehan IRIS ED Abhishek Trehan said stability in the interest rate regime will help the sector.
Ramani Shastri, Chairman and MD, Sterling Developers, said, “RBI's status quo stance is welcome to boost overall market confidence.With the economy improving and all signs being positive, there is no hesitation among home buyers to invest in residential real estate property for long-term returns.
Gurmit Singh Arora, national president of the Indian Plumbing Association, felt that high mortgage rates were affecting affordability.
Arora said, "...although the prevailing situation has created an illusion of stability and market predictability in the home loan market, the prolonged high interest rate regime is pushing up expenses in terms of affordability."
County Group director Amit Modi said the move is beneficial for both developers and potential buyers interested in investing in the area.Prashant Sharma, Chairman, NAREDCO Maharashtra, said, “We welcome the decision of the Reserve Bank of India to maintain its current policy rates amid the backdrop of volatile food prices, ongoing geopolitical tensions and the extended pause on interest rates by the Federal Reserve. "
