Hailing the RBI’s decision to keep policy rates unchanged, the real estate industry on Friday said the low-interest regime on home loans will continue, aiding revival in housing demand that has been hit badly during the last two months due to a second wave of the COVID pandemic.
The industry demanded more steps to boost liquidity.
“RBI continues to maintain an accommodative stance as it is crucial to mitigate the impact of COVID pandemic,” CREDAI President Harsh Vardhan Patodia said.
“Modifying the ECLGS scheme and clear instructions to banks and other financial institutions on sanctioning funds to labour intensive sectors like Real Estate is the need of the hour,” he added.
Naredco President Niranjan Hiranandani, National President, NAREDCO said the RBI has kept the benchmark rates unchanged, which will benefit home loan borrowers.
“While it reflects a response to the COVID-19 pandemic challenges, it is an advantage for home loan borrowers, with the floating retail loan rates continuing to be at the lowest level over the past two decades,? he said.
Sanjay Dutt, Managing Director and Chief Executive Officer, Tata Realty and Infrastructure termed the policy as good news.
To revive the property market, he demanded industry status for real estate, input credit, allowing FDI in RTMI (ready to move in ), a single-window clearance mechanism at the State level and lower GST on raw materials for the sustainable long-term growth of the sector.
Anshuman Magazine, Chairman and Chief Executive Officer, India, South-East Asia, Middle East and Africa, CBRE, said the RBI’s accommodative stance will help sustain homebuyer sentiments which were strengthening pre-second wave.
“With the repo rate and reverse repo rate being maintained at a status quo, banks and NBFCs will continue to render loans at reduced rates to homebuyers, thus supporting demand in the realty sector,” he added.
Anarock Chairman Anuj Puri described the policy to be positive for homebuyers.
“The continuation of this low-interest rate regime works very well for all borrowers as the environment of high affordability is likely to continue for some more time,” Puri said.
Amit Goyal, the CEO, India Sotheby’s International Realty, said the policy effectively means that the interest rates on home loans would continue to remain at a historic low.
“We believe RBIs goal to maintain the liquidity and support economic growth in the country through lower interest rates will be crucial for recovery from the second wave of the pandemic,” Goyal added.
Dhruv Agarwala, Group CEO, Housing.com, Makaan.com & Proptiger, said the RBI move to hold the repo rate is along expected lines. He said the banking regulator should announce monetary support to the NHB to revive growth in the real estate sector.
Knight Frank India MD Shishir Baijal felt there was a dire need to provide monetary policy support – on account of both easy availability and lower cost of funds – to households and businesses alike.
Samantak Das, Chief Economist, and Head Research & REIS, JLL, said: “Though the competitive mortgage rates are expected to provide long term support for sustained growth of real estate, overall economic recovery leading to job, and income growth will be contributing factors for housing demand. ”
Among NCR builders, Signature Global, which is into affordable housing, Chairman Pradeep Aggarwal asked prospective home buyers to take advantage of the low home loan rates.
Amit Raj Jain, Head of sales at BPTP Ltd, said: “Historical low home loan interest is a boon for homebuyers and homebuyers should take advantage of the same.”
Raheja Developers ED Nayan Raheja and Bhumika group MD Uddhav Poddar sought industry-specific steps to boost demand.
Housing brokerage firm Square Yards CFO Piyush Bothra said the home loan interest rate would remain stable at the current level.
Investors Clinic founder Honeyy Katiyal said interest rates on home loans needed to be lower for a longer period.
Kaushal Agarwal, Chairman, The Guardians Real Estate Advisory, said lending rates should be further reduced till demand reaches the pre-COVID level.