RBI’s Monetary Policy announcement today is along expected lines. Given the fact that certain steps have already been taken in the last few months to aid the real estate sector to sail through this challenging period, the expectations from today’s policy announcement were muted. The good thing is that the RBI has said that it will maintain adequate liquidity in the market, and we hope that the real estate sector will get some help from it. Home loan rates are quite attractive at present and it is a great opportunity for home buyers to buy property. Many people are already investing in real estate assets after realising the financial security that these assets provide in difficult times.
Pradeep Aggarwal, Founder & Chairman – Signature Global Group & Chairman – ASSOCHAM National Council on Real Estate, Housing and Urban Development:
The affordable housing segment is already enjoying the increased demand, and the latest unchanged stance of the RBI will not have much impact on the demand per se. In fact, the growth projections of the RBI will instil positive sentiment in the market, which will translate into good numbers for the real estate sector too. If economy recovers, which is likely after the RBI said in the MPC review that it would maintain liquidity in the market, and the job market remains vibrant, then the affordable housing segment buyer will expedite the process of owning a property. Right now, we would say that we completely understand the stand taken by the RBI in this MPC, and hope that growth projections improve leading up to a vibrant market for the real estate sector.
Prateek Mittal, Executive Director, Sushma Group:
The decision by the RBI to maintain the status quo was on the expected lines, as the Apex bank has already announced numerous steps in the last few months. The demand for real estate assets is already high, as we have been receiving an encouraging response for all our projects. We hope the individual banks will take necessary steps and keep the real estate sector in their priority lending list. The demand is already potent, and with road laid out for more projects to come up after the RBI announced loan restructuring recently to help stuck projects, the buyers will have more options to choose from. This year, not only developers but buyers also got gifts from the RBI in the form of low home loan interest rates and loans being linked to loan to value only.
Raman Gupta- Director (Branding & Construction) GBP Group:
In today’s announcement, the apex bank has kept the repo rate unchanged to 4 percent, which was an expected move to keep the economy of the country afloat, as an after effect of the lockdown. Being one of the major contributors to the economy of the country, the benefits provided to the real estate sector have been happening over different months. North Indian realty market has witnessed urban demand gaining momentum, due to the ambitious infrastructure developments like expressways, airports commencing with their developments. We appreciate the policy support being provided by the government, the most significant ones being lowest home loan rates, restructuring of loans based on the projects, linking home loans to LTV as all of these have continued to help us in boosting demand for residential segment.