The Reserve Bank's decision to keep key policy rates unchanged will lead to continuation of low interest rates on home loans and support ongoing recovery of housing demand, according to property developers and consultants.
Welcoming the RBI policy, CREDAI President Harshvardhan Patodia said, the "RBI's accommodative stance on keeping the repo and reverse repo rate unchanged is undoubtedly a progressive and cautious move especially in times when the entire industry is carefully assessing the possible impact of the new Omicron wave." The continuation of low home-loan interest rate regime is bound to instill more confidence to the home buyers and support the ongoing market and economic recovery which has been promising, post a good festive season, he added.
Niranjan Hiranandani, Vice Chairman of NAREDCO, and MD Hiranandani Group, said the real estate sector will benefit from the low home loan interest rates which continue as a result of the RBI MPC's decision.
"Home buyers should make the most of historic low home loan interest rates regime, he said.
Amit Goyal, CEO, India Sotheby's International Realty, said the home loan interest rate will remain at the current level of sub 7 per cent per annum.
"We expect demand in the housing market to improve further. All eyes are now on the upcoming budget. It will boost the real estate sector if the government enhances deductions against home loans in Budget 2022." Sandeep Runwal, President, NAREDCO-Maharashtra, said the low mortgage rates would continue, at least till the end of the year. "This will provide required fuel for the growth of the economy along with the real estate industry." Dhruv Agarwala, Group CEO, Housing.com, Makaan.com and Proptiger.com, said the RBI's decision to keep key policy rates unchanged is along expected lines.
"If home sales have shown consistent improvement over the past couple of quarters, much of this can be attributed to the record low interest rate regime.
Upsetting the current momentum would have been highly detrimental to the overall economic recovery," he said.
Ashwinder R Singh, CEO Residential, Bhartiya Urban, said this will ensure healthy residential real estate sales to sustain with soft home loan rate regime continuing in the near future.
Anuj Puri, Chairman, Anarock, said the unchanged repo rates will help maintain status quo on the prevailing low interest rate regime for some more time.
"This works well for all home loan borrowers as the environment of affordability will continue," Puri said.
Shishir Baijal, Chairman and Managing Director, Knight Frank India, said the low interest rate regime has been instrumental in reviving the real estate sector in the last six quarters.
"RBI's efforts, along with other demand stimulant measures, have helped revive demand that had been languishing for close to seven years prior to 2020. The continuance of the accommodative stance will help further the cause for the sector," he added.
Colliers India CEO Ramesh Nair said the unchanged repo rate will continue to improve sentiments in the real estate sector.
"The housing sector is already seeing a revival in sales, led by low home loan rates, pent-up demand, and stable prices," Nair said.
Ram Raheja, Director at S Raheja Realty said the low home loan interest rate regime has been greatly instrumental in stimulating India's real estate sector, especially during the festive season.
Rohit Poddar, Managing Director, Poddar Housing and Development, said, while the rise in commodity prices has put upward pressure on input material costs, economy's low-interest rate has been a major contributor to the housing sector's recovery.
Pradeep Misra, MD, New Modern Buildwell said the lower home loan interest rates would help the real estate sector particularly in tier 2 & 3 cities.
"As interest rate along with house pricing is one of biggest influencers of individuals' buying decision, we expect reasonable demand for housing over the next few months," he said.
Investors Clinic founder Honeyy Katiyal said the RBI policy stance has been supportive for residential real estate, helping realtors to clear inventory.
The all-time low interest rates regime has boosted the housing demand and helped the economy to get back to the pre-COVID levels, said Kaushal Agarwal - Chairman, The Guardians Real Estate Advisory.
Shiv Parekh, Founder of hBits that facilitates fractional ownership of properties, said the decision will help the realty sector.
Harresh Mehta, Chairman and Managing Director, Rohan Life capes, said the unchanged repo rate will help home loans borrowers and real estate at large.Dhaval Ajmera, Director of Ajmera Realty & Infra India Ltd, said: "RBI’s announcement to continue with its accommodative stance is a welcome move to support recovery and safeguard economic fundamentals against the risks rising from any exponential outbreak of omicron variant. "RBI maintaining status quo on rates augurs well for brining equilibrium in the demand-supply economics of the real estate industry. With low loan interest rate regime, the home sales velocity witnessed across key Indian cities will continue on upward trajectory. The stock markets are expected to remain buoyant and realty index will continue to advance with positive bias in the short to medium term."