Repo Rate Hike: How real estate developers reacted
New Delhi [India], June 9 (ANI/NewsVoir): The hike in repo rate of 50 BPS by RBI has evoked a mixed bag of feelings in the real estate sector.
While most concurred with the RBI's thrust on controlling inflation they also opined that it would impact the buyers who had begun to show a renewed interest in investing in the realty as it would make home loans costly. However, they were also of the view that it was timely and lauded RBI for keeping it at moderate level.
Amarjit Bakshi, CMD, Central Park
The circumspect approach of the RBI to hike the repo rate by 50 basis points is a laudable decision to ward off the inflationary challenges and provide relief to the household segment. It's a temporary speed breaker in the current growth momentum, which would stabilise the current inflationary trend and build strong foundation in the near future for RBI to again adopt growth-oriented stance.
The current rate hike will certainly make home loans costlier, but it will not have a tangible impact on the buyers in the long run. The real estate sector is on the stronger side of the tide, and no significant impact will be swatted by the industry.
Vikas Garg, Deputy Managing Director, MRG World
The increase in repo rate by 50 basis points will not make any difference to the market, at least in the segment we operate in. The demand and the sentiments of the home buyers are in our favour and, at present, it is beyond these considerations. An increase in the rate of interest won't make any difference, particularly in the "highly affordable segment" we operate in.
Deepak Kapoor, Director Gulshan Group
A balanced approach has been streamlined by the RBI as it shows its noble intentions to bring down the inflation rates. From a micro-industrial lens, it might increase the consumer loan interest rates. But on the other hand, the increase of repo rate by 50 bps will also bring down the rising input costs that developers are facing on a protracted basis.
Uddhav Poddar, MD, Bhumika Group
With retail inflation that is at an 8-year high in April and rise in wholesale prices, fastest in the last three-decades RBI did not have much room. However, RBI MPC's decision to hike repo rate by 50 basis points will definitely affect real estate demand. We however hope that the decision by RBI helps Inflation return to normalcy and benefits the economy in the long run.
Amit Jain, Director, Mahagun Group
Even though we would have wanted the repo rate to remain unchanged but with inflation at an all-time high I doubt it would have benefitted the real estate sector in the long run. Let's hope that the current hike brings in intended results so that we are spared of similar measures in the future. Further, I also expect that by reducing inflationary pressures on input materials it also leads to a reduction in the cost of construction.
Ansh Batra, Director, Buniyad Group
"The inflation encumbrance has made it mandatory for RBI to hike the repo rate by 50 basis points which will cool off the inflation rates as well as rising input costs that had flummoxed the real estate sector. The customer home loan interest rates might see a subsequent hike, but it will not last for a long time. The rate hike will balance the growth prospects of the country and hopefully, put a plug on the inflationary hurdles that have panged down the economic arc of the country."
Navdeep Sardana, CMD, Whiteland Corporation
The repo rate hike by 50 basis points is a middle ground approach taken by RBI to slouch the inflation rates. It is an appreciative move to decrease the inflation rates that has skyrocketed in recent times. It will also help to lower down the input costs that led to a rise in the sales prices of residential properties. The consumer confidence will be boosted by this development and the market territory will be brimming with an increase in new buyers.
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First Published: Jun 09 2022 | 11:01 PM IST