Real Estate

Unchanged repo rate to help realty revival: industry experts

PTI Mumbai | Updated on October 05, 2018 Published on October 05, 2018

The Reserve Bank of India’s (RBI) decision to keep the repo rate unchanged will give a much needed boost to the real estate sector which is witnessing signs of revival in the past six months, industry experts said.

The apex bank on Friday kept the repo rate unchanged at 6.50 per cent, despite global and domestic macro-economic headwinds of rising interest rates in the US, rising crude prices, threat of crude oil fuelled inflation, weaker currency and FII outflows, Knight Frank India Chairman and Managing Director Shishir Baijal said.

“The rates remaining unchanged has opened a great opportunity for buyers. As the festive season is also round the corner and property rates are fairly low across the country, it will trigger the home buying sentiment in the market. Also the rupee has depreciated to its all time low to 74 against dollar should attract NRI property buyers,” Poddar Housing and Development managing director Rohit Poddar said.

Relief to buyers

Echoing similar views CREDAI national president Jaxay Shah said the decision to keep the repo rate unchanged is a relief to the developers, home buyers and real estate stakeholders at large.

“However, the economy is too precariously poised for real estate to pull itself by its bootstraps. We hope in particular for decisive steps to end the credit freeze,” he added.

Welcoming the decision, CBRE India and South East Asia chairman Anshuman Magazine said that any hike in repo rate would have impacted consumption sentiments and also the real estate sector.

Calibrated tightening

“Also, the change in stance of the RBI from neutral to calibrated tightening is an indication of the intent to keep inflation levels in check,” he said.

Voicing similar concerns, Colliers International India managing director Joe Verghese opined that considering the mood of uneasiness in the banking and financial sector, the RBI has taken the right step by not going in for another hike in interest rates at this stage.

“This would have only further dampened the sentiments across the real estate industry, especially with the festive season round the corner,” he said.

House of Hiranandani chairman and MD Surendra Hiranandani said the hike might have impacted consumption sentiments negatively ahead of the festive season.

“From a consumers perspective, home loan rates are attractive so they must utilise this opportunity and make their purchases by cashing in on deals in the market,” he said.

Published on October 05, 2018

A letter from the Editor

Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!


Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.