Repo Rate remains unchanged, RBI’s stand developers say will benefit homebuyers. Home loans will continue to remain at attractive rates too.
By Varun Singh
As was expected, the RBI has kept the repo rate unchanged. The Monetary Policy Committee voted unanimously to leave the policy repo rate unchanged at 4 per cent, announced the RBI Governor.
The monetary policy committee’s decision to keep key rates unchanged was on expected lines and may continue in the near future to support growth as private consumption has slowly started and several stalled projects have been revived due to the government’s efforts, stated ASSOCHAM and NAREDCO National President, Dr. Niranjan Hiranandani.
“Home loans will continue to remain at attractive rates, this should augur well for home buying sentiment.”
NAREDCO National President, Dr. Niranjan Hiranandani.
According to Anuj Puri, Chairman, Anarock Property Consultants, it goes without saying that the real estate industry’s perennial hope is fixed on lower interest rates.
“This would be enabled by reducing the repo rate – a least in theory, given that transmission of reduced repo rates to bank interest rates has been slow at best. With real estate demand gradually returning, especially in the wake of developers’ discounts and freebies and reduced stamp duty charges (in Maharashtra), reduced repo rates would have given an added boost to the ongoing festive season,” said Puri.
Many developers claim that the unchanged repo rates is a welcome sign.
Parag Munot, Managing Director, Kalpataru Limited, said, “It is good news for homebuyers as home loan interest rates are expected to remain at current levels in the fiscal. Continuation of low rates, along with reduced stamp duty and various developer schemes will keep up the robust momentum. Importantly it will serve as the springboard for real estate growth in the next fiscal, as the economy recovers from pandemic’s impact.”
Some developers say that the low lending rates will boost sales.
“The lowest lending rates at 6.9% will further boost the sentiment in the real estate market encouraging sales pushing the sector on a complete recovery trajectory,”said, Manju Yagnik, Vice Chairperson, Nahar Group and Sr. Vice President, NAREDCO West.
“The real estate industry in particular, stands to benefit due to several measures taken by the government so far. However, there is a lot that needs to be done for the sector to improve the pace of growth. We are looking forward to a bigger rate cut and sector-specific lending provisions to improve both the liquidity scenario and consumer spending ability,” said Surendra Hiranandani, Chairman and Managing Director, House of Hiranandani.
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