Realtors hail RBI policy, urge apex bank to increase housing liquidity
The real estate industry on Wednesday welcomed the RBI’s decision to keep policy rates unchanged and provide additional liquidity of ??10,000 crore to the National Housing Bank (NHB), but said the umbrella bank should ensure the fund is made available to cash-strapped developers to complete projects.
The Reserve Bank of India (RBI) has kept its key interest rates unchanged and has remained in its dovish stance amid concerns over rising Covid-19 infections that could derail the nascent economic recovery.
“By keeping repo rates unchanged, the RBI has maintained an accommodative stance. The RBI governor’s assurance of providing adequate credit by ensuring abundant liquidity and the announcement of ??10,000 cr of additional cash at NHB must be transferred to real estate as the sector is struggling to find funds for projects, ”said CREDAI National President Harsh Vardhan Patodia.
Anshuman Magazine, chief executive officer of CBRE India, Southeast Asia, Middle East and Africa, said the RBI decision was made with the aim of securing economic recovery, while ensuring that inflation remains within the target for the future.
The central bank announced additional measures such as special liquidity facilities for financial institutions, including ??10,000 crore for the NHB, he said, adding that these measures would help revive the real estate industry.
NAREDCO Chairman Niranjan Hiranandani said, “The unchanged RBI repo rate, which signals a continued borrowing momentum. In addition, the anchoring of the real GDP forecast at 10.5% reflects India’s economic recovery as being healthy, self-sufficient and resilient.
Sanjay Dutt, Managing Director and CEO of Tata Realty and Infrastructure Ltd, said this is the fifth time in a row that the RBI has attempted to maintain an accommodative stance and will certainly play an important role in the industry’s long-term recovery. .
“Considering that real estate is the backbone of several other sectors, we urge the government to introduce measures that truly elevate the sector, such as granting industry status, allowing FDI in projects RTMI (ready to move in) and the extension of the tax advantage from affordable to medium-sized housing, ”he added.
Ashish R Puravankara, Managing Director of Puravankara Ltd, said the unchanged repo rate will be an integral part of real estate investments and allow more home buyers to enter the market easily.
Manoj Gaur, CMD, Gaurs Group welcomed the policy of RBI but felt that more measures must be taken to revive the sector.
The real estate sector needs several measures, and we expect a push from the RBI to banks to provide loans to the sector, said Uddhav Poddar, MD, Bhumika Group.
Ram Raheja, director of S Raheja Realty, said this will continue to drive demand for housing. “Housing markets have responded well in the past to lower mortgage rates, reduced stamp duties and other discounts.”
The chief executive of Mumbai-based manufacturer Spenta Corporation, Farshid Cooper, said a rate cut would have been good for consumers.
Among real estate consultants, Housing.com and PropTiger CEO Dhruv Agarwala said the RBI’s decision was as expected. He hoped lenders would take inspiration from the RBI’s decision to leave rates unchanged and continue to offer homebuyers the benefit of a historically low interest rate regime.
Anuj Puri, president of ANAROCK, said mortgage rates could remain stable.
However, he said: “The incentive period for lower rates (from 6.7%) expired on March 31. The SBI has already returned to its normal rates and other banks will follow suit as well. could impact housing demand, particularly in Maharashtra, where stamp duty cuts coupled with the lowest mortgage rates on record have significantly boosted housing demand. ”
Savills India CEO Anurag Mathur said the RBI was keeping the repo rate unchanged despite the marginal rise in inflation in recent months. “The real estate market, especially the affordable housing segment, will continue to benefit from record interest rates.
Samantak Das, chief economist and head of research and REIS, JLL India, said the resurgence of the pandemic and the resulting concerns about its impact on the economy and businesses demand a resilient approach.
Rajani Sinha, Chief Economist and National Research Director, Knight Frank India, said: “The RBI has taken reassuring steps to inject additional liquidity into the housing sector through increased funding interventions at the National Housing Bank and the extension of the priority sector label for the bank. funding to NBFCs for home loans.
Honeyy Katiyal, founder of Investors Clinic, said this is an important step in allowing the economic recovery to remain strong.
“The RBI, and in particular the MPC, are to be commended for maintaining their accommodative stance for over a year now. Its approach to dealing with the situation created by the pandemic, and the measures taken to help revive the economy, will stand. in history as one of the best, ”said Kaushal Agarwal, President of The Guardians Real Estate Advisory.