Realtors Call for Sector-Specific Packages Beside Unchanged Repo Rate

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In the latest RBI announcement, the apex bank has kept the repo rate unchanged. Realtors are taking positives from the stance of the status quo and say maintaining an accommodative stand will build the ground for a quicker bounce back but sector-specific packages and integrated measures are required. The RBI's decision to keep key rates constant, including the repo rate at 4%, is in line with expectations, given the COVID-19 situation, which has caused many industries looking for ways to come out of the challenging scenario. Dhiraj Jain, Director, Mahagun Group, said, “Despite the fact that public lender SBI recently announced a raise in its house loan rates, raising hopes that other banks will follow suit, we anticipate that lenders will follow the RBI's lead and keep rates steady, allowing homebuyers to benefit from historically low-interest rates. RBI will probably keep a close eye on the COVID-19 situation and adjust its position as necessary later in the year.” The RBI has maintained its accommodative stance until it sees an appropriate time to drive economic growth without jeopardizing its key goal of taming inflation. Ashok Gupta, CMD, Ajnra India Ltd. said, “The Apex bank is faced with the challenging task of balancing inflationary pressures with the avoidance of a rise in borrowing costs. We expect the central bank to conduct policy normalisation to keep inflationary pressures in control and maintain financial stability. While it is acceptable that the repo rate remains steady, particular steps must be taken. Buyers are returning to the sector after realising the value of real estate assets with historically low EMIs, but developers, too, want help to expedite construction.” Indian economy is making a faster recovery, and maintaining an accommodative stand will build the ground for a quicker bounce back. Harvinder Singh Sikka, MD, Sikka Group, said, “As the third wave is staring at us, the psychological scar will persist, and there will be some amount of uncertainty in the market. In such circumstances, the government should take an accommodating stance based on increased cash infusion, demand stimulation, and stronger growth to prevent market fatigue.” Aside from that, the real estate sector was anticipating sector-specific packages and integrated measures. Saurabh Thakur, Senior VP-Sales, Spectrum Metro, , said, “Although the repo rate has stayed steady, we believe the Apex Bank's announcement to extend the long-term repo operation (TLTRO) for another three months will boost real estate. We expect the liquidity situation to improve due to this decision and NBFCs to give financial support to the real estate sector. Demand for real estate assets is already high due to a variety of variables, including low home loan interest rates, and we forecast increased sales in the coming months.” Vijay Verma, CEO, Sunworld Group added, “The Apex Bank retained its repo rate at the same level as before, as was expected. It's evident that the central bank is being accommodative. In recent months, the RBI has taken a proactive approach and implemented a number of measures for various businesses and sectors.” Yash Miglani, MD, Migsun Group was of the view that “The Reserve Bank of India is doing everything it can to keep India's economy on track. The RBI has extended the TLTRO timetable to solve the liquidity situation. Because the situation after Corona is challenging, recovery will be difficult until and unless banks commit to supporting the sector, which involves numerous linked industries.” We expected the RBI to make specific announcements to encourage investment in the sector. We recognise the current predicament, as it is limited in its ability to cut the repo rate below 4%, said, Dhiraj Bora, Head – Communication & Marketing, Paramount Group while adding that “The RBI allowed commercial real estate project loans to be extended till the start of commercial operations in February 2020, which was the last key news for the commercial sector (DCCO). We are optimistic that the segment will receive ample liquidity now that the RBI has indicated that the TLTRO available to NBFCs will be extended until December 2021.”