Several industry experts said on Friday that the Reserve Bank of India's (RBI's) decision to keep key interest rates on hold augurs well for the real estate sector as it will further improve consumer sentiment.
Aditya Kushwaha, CEO and Director of Axis Ecorp, said keeping the rates unchanged will prompt more buyers to invest in secured assets like real estate. "For the upcoming season, real estate players including us are looking forward to launching new projects." Vinit Dungarwal,
Director of AM Project Consultants, said keeping interest rates unchanged is a welcome move as it will help in demand creation. "For the real estate sector to have a strong H2, low interest rates offered should continue preferably till the end of the year." Sandeep Runwal, Managing Director of Runwal Group and President-Elect of NAREDCO Maharashtra, said apart from low interest rates, consumers' realisation of owning a home along with stamp duty cut in key markets were growth drivers for the real estate sector in past few quarters.
He said strong demand is expected to continue going ahead.
Vikas Wadhawan, Group CFO of Housing.com, Makaan.com and Proptiger.com, said the RBI's decision augurs well for real estate industry in general and home buyers in particular.
"A record-low interest rate regime will enable a large number of buyers to invest in property. Since homebuyer sentiment has already improved in recent times, the RBI move will prompt buyers and investors to put their money in secured assets like real estate." Abheek Barua, Chief Economist of HDFC Bank, said the RBI has continued with its line of supporting growth despite the recent spikes in inflation.
"Recognising concerns around inflation and excess build-up in systemic liquidity over the last month (at Rs 8.5 lakh crore as of August 4), we saw the central bank take its second step towards liquidity normalisation."