Realty sector players on Thursday said that the RBI’s decision to keep the policy interest rate unchanged will help in improving affordability and sustaining the growth momentum. With this move, consumers and home buyers will continue to enjoy decade low-interest rates prevailing from the past few months and continue to drive robust demand for the sector.
Ajmera Realty & Infra India Director Dhaval Ajmera said, ‘’ MPC has provided room to remain accommodative, improving inflation outlook with continuous policy support warranted for a broad-based recovery. The real GDP growth is projected at 7.8% for 2022-23 and inflation targets are seen to be milder than expected. We welcome these measures as they will continue a lower rate regime for the industry in general and also focus on the rate-sensitive real estate sector.’’
S Raheja Realty Director Ram Raheja said the pandemic and lockdown continue to be a hopeful prospect for the real estate sector given it is a safe haven and tangible asset at the time of crisis. ‘’A low home loan interest rate regime has been greatly instrumental in further stimulating the real estate sector, eventually increasing investment and home buying in the last two years. The coming quarter continues to remain optimistic for most of the sector,’’ he noted.
Knight Frank India CMD Shishir Baijal said the housing market has been showing a healthy bounce back from the covid crisis and low-interest rates will help in improving affordability and sustaining the growth momentum. ‘’The substance of the housing market recovery will have a strong multiplier effect on overall economic growth,’’ he opined.
According to Poddar Housing and Development, MD Rohit Poddar the economy’s low-interest rate has been a key factor in the housing sector’s revival.
REIS India, JLL chief economist and Head Research Dr Samantak Das observed that with the unchanged policy rate the lending agencies will continue to maintain the prevailing low home loan interest rate. ‘’Our expectation is that during the current calendar year, the residential sector will surpass the pre-pandemic level of sales backed by affordability synergy. However, we have to keep a close watch on the global policy changes and headwinds, particularly the movement of the US Fed rate,’’ he said.
However, ANAROCK Chairman Anuj Puri cautioned that while the window of opportunity for homebuyers to avail low-interest rates has been extended for some more time it is unlikely to prevail for much longer—sooner or later, repo rates will rise.
