Developers sleet RBI policy; demand easing of interest rate
CREDAI says that interest rates have increased and the hoped rates would come down in near future which motivates the economic growth as well as housing demand.
Mr. Lalit Kumar Jain, Chairman of Confederation of Real Estate Developers’ Associations of India (CREDAI), says that this is positive step as it indicates that interest rates will not go upward. They hope the era of interest rate increased as ended.
RBI in its first bi-monthly monetary policy statement skip the short-term lending rate, or repo rate remain same at 8 percent and the cash reserve ratio static at 4 per cent.
He further says that they believe the RBI will not look for a constant decrease in the repo rates in the future. This will have positive result on the growth of real estate industry which will give power to the GDP. He also added that the statement of RBI governor shows the fall in CPI which is huge reassurance.
CREDAI says that the particle view of the growth of the real estate industry to help revive the economy and give a strength to the supply side to check price rise.
Mr. C Shekar Reddy, President, CREDAI, says that the increase should be injected into the economy with reduction in repo rates with wholesale inflation under 5 per cent and retail inflation at around 8 per cent. He also concluded that the real estate sector has been witnessing high input costs, high cost of funds and a moderate demand over the last few months
Mr. Anuj Puri, JLL India Chairman & Country Head, says that the reason because of which repo rates have remained same is positive. He further added that even a small increase will give pressure on already struggling rate-sensitive sectors like real estate, automobiles and banking, and negatively impacted borrowing sentiments of consumers.
Mr. Sachin Sandhir, RICS South Asia MD, says that the RBI’s decision to keep rates constant comes on expected lines as there has been positive result in the economy like the softening of the retail inflation.
Mr. P Sahel, Lotus Green Vice Chairman, says that the decision of RBI to keep rates same was mainly forecasted by the sector. He also says that they see the decision of bank to maintain the same rates as a prelude to the gradual easing of interest rates.
Mr. Ajay Aggarwal, Microtek MD, says that the next policy analysis will give positive news on interest rates.
Mr. Rahul Gaur, Brys CMD, shows the satisfaction over the RBI’s decision of not increasing rates while Mr. Rajesh Goyal, RG Group MD, says that the sector was excepting decrease in the repo rates to overcome down fall in housing demands.
Source: The Business Line
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