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00:00:00
2022-02-10

Financial Express - RBI move good news for homebuyers but ‘historic low’ interest rates may not continue for long, say developers

RBI move good news for homebuyers but ‘historic low’ interest rates may not continue for long, say developers. By Financial Express

The RBI move will strengthen the growth momentum as record-low lending rates will further give a fillip to the real estate sector and other sectors of the ever-growing Indian economy.
After the Union Budget 2022, this announcement will certainly improve the market sentiments and bring cheer for the housing sector.

Contrary to market expectations, the Reserve Bank of India maintained status quo on key policy rates as well as its accommodative policy stance in the MPC meet on Thursday in a bid to revive and sustain growth.

Welcoming the policy announcement, industry experts and developers said the RBI MPC has guided the Indian economy through a difficult time, ensuring that the pandemic did not hurt growth prospects even while exercising control over issues such as inflation.

“In line with the efforts to limit disruption to economic activity, for the tenth consecutive review, the RBI MPC maintained status quo on key policy rates, while also maintaining an accommodative stance. This reflects on the consistency which is seen vis-à-vis the Hon’ble Finance Minister’s Budget Speech and today’s Monetary Policy announcement,” said Dr. Niranjan Hiranandani, Vice Chairman, NAREDCO and MD, Hiranandani Group.

The RBI has remained steadfast in ensuring trust in domestic financial system, today’s monetary policy review supports economic growth, creates a positive scenario for robust retail lending as also private capital investment, even as it continues to insulate the Indian economy from global spillovers. It has retained its growth projection at 9.2 per cent and inflation at 5.3 per cent for the current financial year.

“For the home buyer, favourable market dynamics in terms of home loan interest rates continue. However, trends indicate that this ‘historic low’ may not continue for long, and home seekers would be advised to pick up the home loan while still at such low rates,” Hiranandani added.

Amit Goyal, CEO, India Sotheby’s International Realty, said the RBI decision to maintain the status quo on policy rates is good news for home buyers. “The historically low home loan interest rates will continue for some more time and keep the mood buoyant. The other welcome news is that the business outlook remains optimistic and real GDP is projected at 7.8% for next fiscal by the governor,” he aded.

Atul Banshal, Director Finance, Omaxe Ltd, said, “The RBI decision to maintain surplus liquidity and keep the repo rate unchanged for a sustained period of time has helped support India’s growth. With the economy showing encouraging signs of recovery, and with expectations that the GDP will clock 9.2% in FY22 thereby taking the economy above the pre-pandemic level, the RBI move will strengthen the growth momentum as record-low lending rates will further give a fillip to the real estate sector and other sectors of the ever-growing Indian economy.”

Some developers said the RBI decision of keeping the repo rate and the reverse repo rate unchanged for the 10th time is as per their expectations.

“After the Union Budget 2022, this announcement will certainly improve the market sentiments and bring cheer for the housing sector. In the last couple of quarters, the sector has witnessed great traction. Sustaining the accommodative stance will enable banks to lend home loans at the current level which is a most promising factor for homebuyers’ decisions,” said Santosh Agarwal, CFO and Executive Director, Alpha Corp.

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