Mohit Goel, CEO, Omaxe
With sharp reduction in policy rates announced since March, a pause was always on the cards. But we expected the apex bank to announce some measures like restructuring of loans, which could have reduced the stress on the sector and given boost to demand. However, the decision to constitute an Expert Committee under imminent banker KV Kamath to recommend financial parameters, along with the sector-specific benchmark for resolution plans is a welcome step. The infusion of Rs 5,000 crore in NHB is also a step in the right direction to boost liquidity.
Dhruv Agarwala, Group CEO, Housing.com, Makaan.com and Proptiger.com
“As the economy is still to recover to pre-covid levels and the risk to aggregate demand in the near future remains high, it is important that the transmission of past rate cuts are more effectively passed on to consumers as well as industry. However, It is indeed heartening to hear that the average lending rates have fallen by close to 90 bps since March 2020. Additionally, the liquidity in the banking system seems to be at comfortable levels. Nevertheless, the RBI’s decision to provide additional liquidity to the tune of Rs 5,000 crore to NHB augers well for the stability of HFCs that will provide some growth impetus to the real estate sector in turn.
Manoj Gaur, MD, Gaurs Group and Chairman, Affordable Housing Committee, CREDAI (National)
Real estate sector needs hand holding at this point in time. Though unchanged repo rate is understandable the need to have special measures in place cannot be denied. The buyers are coming back to the sector after realizing the importance of real estate asset backed by historically low EMIs, the developers too need some interventions that can help them expedite the process of development.
Amit Modi, President (Elect) CREDAI Western UP and Director ABA CORP
Market experts predicted a repo rate cut by 25bps in today’s announcement by RBI, but fortunately the longing demand from real estate sector of loan restructuring was declared. With the consumer confidence low due to the ongoing pandemic situation, and real estate sector going through a period of strife, we appreciate the government’ efforts and keen eye to look into initiatives that will help us in generating more demand in the real estate market as well as helping millions of first time homebuyers to realize their dream. Loan restructuring will strengthen the real estate outlook for developers in the coming years and pave way for a consistent growth.
Ashish Bhutani, MD, Bhutani Infra
RBI Monetary Policy Committee has kept the repo rates unchanged, even when market experts cited the conditions being favorable for it. This decision was taken due to the signs of revival, that the MPC has observed with unlock. However, the continuous surge in cases is constantly hampering the stability that commercial real estate needs for planning the expansion, mapping the already allocated funds, driving international investments, and dispersing some amount of capital to construction and permissions required. We are hoping apex financial institutions assess the realty market closely to deliver, if not repo rate cuts then some other kind of relaxation to improve sentiments of associated stakeholders.
Uddhav Poddar, MD, Bhumika Group
The main issue is that banks have not taken adequate steps to reduce the rates or to ease the liquidity. All the good steps taken by RBI earlier will not bear fruit if the banks don’t take necessary action at their level. Real Estate is badly affected due to the pandemic and we need support from the banks by providing adequate liquidity to the sector and providing cheap home loans to the customers, to make sure the segment can flourish again. We have to understand that real estate is an integral part of economic growth as it is the largest employment generator.