Low home loan rates set to boost home sales: real estate agents on RBI policy

Property developers on Friday welcomed the RBI’s decision to keep interest rates unchanged, saying the low interest rate regime will help keep selling momentum in the housing sector.

Harsh Vardhan Patodia, president of brokerage organization CREDAI, said RBI’s decision to keep the repo rate unchanged at the historic low of 4 percent will bring economic development and growth to the country, especially after the impact of COVID-19 on several sectors .

”The current repo rate will be beneficial for the real estate sector as homebuyers will continue to see a fall in home equity interest rates. We appreciate RBI’s confidence in maintaining liquidity to keep the real estate industry bullish on future growth, especially after the sudden impact on real estate players followed by rising commodity costs,” he said.

Patodia hoped that the RBI would maintain the status quo for the coming months as it can be a tipping point for all sectors contributing to the country’s GDP.

Naredco Vice Chairman Niranjan Hiranandani said: “The current low home loan interest rate and the risk weighting guidelines for individual home loans, which have been extended to March 31, 2023, will continue to be the ‘demand catalyst’ in the short-term and ensure that the selling velocity continues despite the short upward revision in home prices.” Nayan Raheja of Raheja Developers said, “The EMI will not be impacted by this decision. Continuing a positive attitude as the economy emerges from its extended recovery path bodes well for the rise of a strong economy.” This decision will have long-term implications for the real estate industry and ensure it continues to expand, he added.

“RBI’s decision to leave the repo rate at 4 percent was expected. The announcement will definitely help the real estate sector accelerate growth and will certainly improve market sentiment. This was done to maintain the accommodative stance that will allow banks to lend to homes at current levels, which is a key factor in encouraging home buying decisions,” said Santosh Agarwal, CFO and Executive Director, Alpha corp

Trehan Group Managing Director Saransh Trehan said RBI’s decision to extend the streamlined home loan risk weighting norms by a year to March 2023 will give a boost to the housing market by encouraging banks to make loans available present potential homebuyers at affordable prices.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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