Real Estate sector was all smiles post the RBI’s monetary policy announcement earlier today. Allocation of fund and restructuring of loans makes the industry smile.
By Varun Singh
The announcements made by the RBI Governor Shaktikanta Das has put a smile on the face of real estate sector.
Real Estate sector has been facing a tough time due to COVID 19 and the following lockdown.
However, Thursday saw the real estate sector appreciating the steps taken by the RBI, especially the infusion of liquidity via the National Housing Bank in the housing sector. Also the restructuring of loans is a major boost for the sector.
Dr Niranjan Hiranandani President – Assocham and Naredco called the RBI announcement a positive step.
He said, “Opening up the window for restructuring of loans to companies, individuals and MSME under mandated safeguards grants breather to the liquidity strapped industry.”
“Additionally, liquidity of Rs 10,000crores announced to be infused in NABARD and NHB will definitely aid the reeling sector to tide over the liquidity crisis,” said Hiranandani.
Nayan Shah, President, CREDAI MCHI lauded the RBI governor, Shaktikanta Das, for allowing restructuring of loan. He said, “This is bound to provide a huge relief to many organizations in Real Estate as well as the larger economy.”
Anuj Puri, Chairman – ANAROCK Property Consultants says, “RBI announced several additional measures that will go on to accelerate the economy, enhance liquidity, improve flow of credit and deepen digital payment facilities.”
RBI allocated Rs 5,000 crore each to National Housing Bank and NABARD. Puri says this is a much-needed step for sectors including real estate reeling under the liquidity crisis. It will help infuse capital into the HFCs and eventually provide relief to developers battling liquidity issues in COVID-19 times.
Developers are more excited about the one-time restructuring of loan allowed by RBI more than other aspects it seems.
Bhushan NemlekarDirector, Sumit Woods Limited, said, “The decision to allow one-time restructuring of loans by RBI is a great news for the real estate industry. This will certainly help a lot of developers to complete their projects on time and a lot of buyers to get their homes soon.”
Manju Yagnik, says, allowing restructuring of loans for stressed MSMEs will help small businesses which are huge employment generators.
Yagnik who is Vice Chairperson, Nahar Group and Vice President NAREDCO (Maharashtra) says, an extension in the Loan moratorium would have helped lower and middle-income groups to better manage their finances.
A sentiment upswing will follow among developers and buyers alike given the infusion of additional liquidity to NABARD and National Housing Bank, says, Ram Raheja, Director at S Raheja Realty.
Shishir Baijal, Chairman & Managing Director, Knight Frank India, calls the RBI announcement as interim breather for the real estate sector.
He said, “The loan resolution plan, which allows for payment moratorium up to 2 years, for corporate and personal borrowers should provide a breather to stressed real estate developers and individual borrowers in the housing segment alike.”
Also Read: RBI shield for housing sector from liquidity disruptions
