Numerous industry experts stated on Friday that the Reserve Bank of India’s (RBI) decision to maintain key interest rates on hold bodes well for the real estate sector, as it will boost consumer sentiment even further.
According to Aditya Kushwaha, CEO and Director of Axis Ecorp, maintaining current rates will encourage more buyers to invest in secured assets such as real estate. “We, along with other real estate players, are looking forward to launching new projects in the coming season.”
According to Vinit Dungarwal, Director of AMs Project Consultants, maintaining current interest rates is a positive move that will aid in demand creation. “To ensure a strong H2 for the real estate sector, low interest rates should be maintained, preferably until the end of the year.”
Apart from low interest rates, Sandeep Runwal, Managing Director of Runwal Group and President-Elect of NAREDCO Maharashtra, said that consumers’ realisation of home ownership, combined with stamp duty reductions in key markets, were growth drivers for the real estate sector in recent quarters.
He added that strong demand is expected to continue in the future.
According to Vikas Wadhawan, Group Chief Financial Officer of Housing.com, Makaan.com, and Proptiger.com, the RBI’s decision bodes well for the real estate industry in general and home buyers in particular.
“A historically low interest rate environment will encourage a large number of buyers to invest in real estate. Given the recent improvement in homebuyer sentiment, the RBI move will encourage buyers and investors to invest in secure assets such as real estate.”
According to Abheek Barua, Chief Economist at HDFC Bank, the RBI has maintained its policy of supporting growth despite recent inflation spikes.
“In response to inflationary concerns and an excess build-up in systemic liquidity over the last month (at Rs 8.5 lakh crore as of August 4), we saw the central bank take its second step toward liquidity normalisation.”
Visit www.mixpoint.in for more interesting stories.