While not much was done for real estate in the last policy meeting, some developers believe previous announcements will definitely help the industry.

Real estate developers welcomed the RBI’s decision to maintain the status quo on key interest rates at its policy meeting on Friday, and said that by keeping the repo rate unchanged, the central bank made a step in the right direction in the current circumstances. With this political stance, there is a growth-oriented approach that was much needed as the second wave of Covid recedes.

Surendra Hiranandani, Chairman and CEO of House of Hiranandani, said: “While the sector was severely affected during the second lockdown, the problems were compounded by a dramatic increase in the cost of raw materials such as steel and fuel. cement. In such a scenario, an unchanged repo rate makes more sense than a rising rate which would have added more pressure on the sector. “

However, “we also need to be aware of the impact on potential home buyers due to uncertain conditions. These buyers are worried and have chosen to wait to buy a home instead. There is a need for stimulating policy measures that would improve the liquidity of the sector, ease credit arrangements and increase buyer confidence. Any announcement in these forms would have been greatly appreciated, ”he added.

Industry experts said the recovery in residential real estate seen in the January-March 2021 quarter was affected by lockdowns introduced to control the resurgence of the pandemic.

“While competitive mortgage rates are expected to support sustained real estate growth over the long term, the overall economic recovery leading to job and income growth will be a contributing factor to housing demand. We believe that low mortgage interest rates, realistic real estate prices, the focus by developers on project completion and economic recovery will likely push residential sales to better levels than in 2020, ” said Dr Samantak Das, Chief Economist and Head of Research and REIS. , JLL.

Thanking apex bank for maintaining its accommodating stance, Pradeep Aggarwal, founder and chairman of Signature Global Group and chairman of ASSOCHAM, the National Council for Real Estate, Housing and Urban Development, observed: “The second wave and rising input costs have a devastating impact on the survival of many businesses. The RBI has rightly taken action to address the deteriorating health of MSMEs and various other sectors severely affected by the second wave. Real estate is still looking for low mortgage interest rates, and the RBI has helped the industry by maintaining the status quo. Buyers should take advantage of the current situation as subsequent prices may rise under the pressure of rising costs. “

Some developers believe that increasing the maximum aggregate exposure threshold under Resolution 2.0 will greatly help individual borrowers and MSMEs as they can now opt for loan restructuring up to Rs 50 crore.

Akshay Taneja, MD, TDI Infratech, said, “The bimonthly monetary policy review kept the repo rate unchanged, but increased the maximum aggregate exposure threshold under Resolution 2.0. This will greatly help individual borrowers and MSMEs as they can opt for restructuring loans up to Rs 50 crore. Real estate being the second sector generating jobs, depends largely on auxiliary industries. With real estate seen as an asset as well as low interest rates on home loans will gradually encourage buyers to invest, but measures like reducing stamp duties would be the right kind of push in uncertain times like this. ci, because these relaxations would be accompanied by a precise timetable. “

The developers also urged the RBI to take industry specific action.

Uddhav Poddar, MD, Bhumika Group, said: “While it is acceptable for the pension rate to remain stable, the need for industry specific steps cannot be overlooked. Buyers had started to return to the real estate market, but as the second wave hit us, demand slowed down again. Therefore, to stimulate demand, interest rates need to be further reduced thereby making homes and real estate assets more attractive with lower EMIs. “

While not much was done for real estate in the last policy meeting, some developers believe previous announcements will definitely help the industry.

Prateek Mittal, ED, Sushma Group, said, “Looking at the MPC, it’s obvious that the central bank is bullish on the economy. The post exudes confidence in the growing economy and has taken steps to support many companies and sectors. If actions were also necessary for the real estate sector, it suffices to implement the announcements made in recent months to make progress.

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