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.