Left Menu
Development News Edition

Real estate sector welcome RBI move to cut repo rates, hopes for boost to industry

Devdiscourse News Desk | Mumbai | Updated: 07-02-2019 17:59 IST | Created: 07-02-2019 16:47 IST
Real estate sector welcome RBI move to cut repo rates, hopes for boost to industry
"From a real estate perspective, this will impact home loan interest rates, and reduced EMIs are among the best harbingers of positive sentiment, leading up to further off- take of real estate across India," he said. Image Credit: Pixabay

Liquidity crisis-hit real estate industry Friday welcomed the decision of the RBI to reduce the repo rates saying the 'unexpected' move will give a fillip to the sector especially after sops in the recent interim budget. RBI Governor Shaktikanta Das slashed the repo rates by almost 25 bps to 6.25 percent, a move which the real estate sector was eagerly waiting for much-needed push for the sector which is reeling under liquidity crunch after the recent IL&FS crisis.

Knight Frank chairman and managing director Shishir Baijal said that as a result of this reduction, banks may pass on the benefits of the revised rates to the end consumer of loans, thereby making it easier for them to make their purchase decision. National Real Estate Development Council (NAREDCO) president Niranjan Hiranandani said the decision will not just enhance liquidity in the economy but also boost investment and give the economy a positive growth phase.

"From a real estate perspective, this will impact home loan interest rates, and reduced EMIs are among the best harbingers of positive sentiment, leading up to further off- take of real estate across India," he said. Echoing similar views JLL India CEO and country head Ramesh Nair said with residential sales and new launches on an upward trend in 2018, genuine home buyers are now actively considering a serious buying decision.

"Overall, this is going to have a positive impact on the housing market and we expect sales and launches to gain further momentum on the back of improved economic scenario," he said. CBRE chairman and CEO, India, Anshuman Magazine said, "It will spur investment and boost demand. The rate cut coupled with the budget stimulus for the economy, and the real estate sector in particular, will impact consumer sentiments positively." Nahar Group vice chairperson Manju Yagnik opined that the decision of changing the stance from calibrated tightening to neutral may welcome more positive changes in the forthcoming policies.

"After a sentiment-boosting budget, the cut in the repo rate is yet another positive step for the real estate sector. However, the impact of this hinges on the willingness of banks to pass on the benefit to consumers in a tight liquidity environment," Colliers International India head- consulting Aashish Agarwal said. "RBI's decision to slash the rate is an unexpectedly positive move. It was also overdue, as this has been the first cut in a long time. It definitely augurs well for the real estate sector which also received a budget bonanza in the previous week," Anarock Property Consultant Anuj Puri said.

Piramal Capital and Housing Finance managing director Khushru Jijina said NBFCs would also benefit from RBIs decision to link bank risk weights on NBFC exposures to the rating of such instruments. "This would improve the flow of bank credit to the better-managed NBFCs. This along with the harmonization of Asset Finance Companies (AFC), loan companies, and investment companies, into a single category, would fastrack the process of consolidation in this space, as we have been expecting for some time," Jijina added.



Dissecting how COVID-19 is catalyzing the trajectory of New World Order

The ensuing pandemic of COVID-19 has hit the globalization in two ways firstly, shrinking the importance of globalization as an economic force by curtailing mobility through worldwide lockdowns, and secondly, rejuvenating the idea of indig...

Domestic seafood trade in focus as COVID-19 changes market dynamics

As predicted earlier in a report titled Seafood industry post-COVID 19 An overhaul to trigger the growth of small fisheries, one of the changes going ahead would be increased focus on domestic seafood trade, driven by falling exports and su...

Migration post-COVID 19: Taking cues from the past to rebuild economies

Migrants are an irreplaceable part of even the essential workforce of developed countries and are on the frontline in the fight against the crisis, making an immeasurable contribution to saving the lives of natives with voting rights....

Socialization Post-COVID-19: Local associations and online groups to play crucial role

Though every age group is suffering due to the global lockdown caused by the ensuing COVID-19 pandemic, the challenges before adolescents are unique. Their social space has shrunk drastically, besides, they have become highly vulnerable to ...


Latest News

3 fresh COVID-19 cases reported, count rises to 32 in Pondy

Puducherry May 25 PTI Three fresh COVID-19 cases were reported in Puducherry on Monday, taking the number of infections in the union territory to 32. The patients were admitted to the Indira Gandhi Government Medical College Hospital, Healt...

Domestic flights begin operations in Karnataka; cancellations mark the day

Domestic air travel resumed on Monday after two months of COVID-19 induced lockdown at the citys Kempegowda International Airport, with a total of 74 Air Traffic Movements till this evening, even as cancellations marred the day. As on 1700 ...

Spain to end quarantine for tourists on July 1

Spain says it will lift a 2-week mandatory confinement for all travelers arriving from overseas starting July 1. The government said in a brief statement that Cabinet ministers made the decision to lift the mandatory quarantine during a mee...

Singapore has to 'move cautiously' in exiting COVID-19 'circuit breaker': Minister

Singapore has to move cautiously in exiting its COVID-19 circuit breaker period from June 2 as there are still hidden cases of infection circulating among the general population, a senior minister said on Monday. National Development Minist...

Give Feedback