Realty players hope that the RBI’s move to hold repo rate will help revive the industry while for home buyers it is the opportune time to avail the offers available in the market. They believe a hike in repo rate would have had a direct impact on home loan rates, especially in the affordable segment where higher interest rates can weaken sentiment.
”With the new year coming in, there won’t be any impact on the real estate sector as interest rates on home loan will remain unchanged. This will result in a win-win situation for both developers and buyers,” said Manju Yagnik, vice chairperson of Nahar Group. She opined that RBI’s decision has given a big relief to the developers and customers.
Poddar Housing & Development MD Rohit Poddar hinted that RBI’s unchanged monetary policy will help the market recover from the earlier structural revamp in the industry. ”From the perspective of a home buyer it is a good time to avail the offers available in the market,” he said.
Shishir Baijal, Knight Frank India CMD, said the decision to keep the key policy rates unchanged is on expected lines and will be a relief for the real estate industry, as a possible rate hike would have adversely impacted the market. ”Since the last Monetary Policy Committee meeting, there has been a big relief with the fall in crude prices and the strengthening of the rupee, thus, reducing inflationary risk. We believe the easing inflation situation and the need to actively support growth are the primary consideration for the MPC to maintain a status quo on rates,” he told DNA.
ANAROCK Property Consultants chairman Anuj Puri observed that politically, an upward revision would not have served the government well as the 2019 elections are around the corner. ”From that perspective, the unchanged repo rate will at least keep the demand for housing loans at status quo. Any move to further discourage customers from availing of bank credit would ultimately exacerbate the liquidity crunch and adversely impact the economy,” he said.
Realty players said that RBI’s decision to keep the repo rate unchanged was solely because inflation targets are still under control. Also, the NBFC crisis currently shows no signs of relenting, and keeping the repo rates unchanged is definitely in tune with the current market signals.
- Realtors believe a hike in repo rate would have had a direct impact on home loan rates, especially in the affordable segment
- RBI’s unchanged monetary policy will help the market recover from the earlier structural revamp in the industry.