Decision not to increase repo rate
With no change in repo rates in the monetary policy recently released by the Reserve Bank of India, there is an atmosphere of excitement in the property sector and it is clear that there will be no change in interest rates on home loans. Due to the low interest rates on home loans, now is the time to buy a home. The RBI’s decision not to raise the repo rate is expected to boost housing demand.
Harshvardhan Patodia, Chairman, CREDAI, expressed happiness over the decision of the Reserve Bank of India (RBI). He also said that the decision taken by the Reserve Bank of India (RBI) at a time when the entire industry was in a state of turmoil, would give a new direction to the property industry. He further said that lower interest rates on home loans would boost the confidence of property buyers and boost the country’s economy. Niranjan Hiranandani, a property expert, also expressed satisfaction over the RBI’s decision. They are keen to take advantage of the low interest rates on home loans, he says.
Amit Goyal, CEO, India Sotheby’s International Realty, says interest rates on home loans are stable at 7 per cent, which is expected to boost demand for residential property. All eyes are now on the national budget. The Indian property industry could get a new direction if the budget decides to cut more home loans. According to Sandeep Ranwal, President, Naredco Maharashtra, interest rates on home loans will remain low till the end of this year. It will also boost the property industry and the economy.
According to Dhruv Agarwal, CEO of Housing.com, Makan.com and Proptiger.com, the RBI’s decision not to raise repo rates was expected. Home sales have risen sharply in the last few quarters, mainly due to lower interest rates on home loans. Ashwinder Singh, CEO of Indian Urban, also welcomed the decision not to raise repo rates, saying that interest rates on home loans would remain low in the near future. Shishir Baijal, president of Knight Frank India, also attributed the rise in the real estate sector to lower interest rates on home loans. The property industry has recovered significantly in the last six quarters due to lower interest rates, it said. Therefore, there is no reason to expect better days for the property sector in the near future.