Business Economy

Realty sector welcomes RBI’s decision to keep repo rate unchanged, says it will encourage buyers’ confidence

New Delhi [India]: Real estate experts have welcomed the Reserve Bank of India’s decision to keep the repo rate unchanged for the eighth time.
Aditya Kushwaha, CEO and Director of Axis Ecorp said that RBI’s move to maintain the status quo on repo-rate and reverse repo-rate for the eighth consecutive time will provide stability to markets and give much-needed liquidity. Kushwaha also remarked that the real estate sector will continue to benefit from the low rate of interest.
“The sector is experiencing good momentum and this decision would further boost demand and sales during the festive season. Another positive takeaway from today’s announcement is that RBI has retained the GDP forecast for the current financial year at 9.5 per cent which will also act as a sentiment booster,” he added.
Vinit Dungarwal, the Director at AMs Project Consultants Pvt. Ltd said, the RBI has been doing the heavy lifting to bring back the economy on track since the start of the pandemic.
“In line with the expectations, the RBI has kept its monetary stance accommodative, keeping rates unchanged in its monetary policy announcement. Add to it we have had a good monsoon season and robust production. The Inflation too has remained lower than the anticipated numbers. All these are positive indicators for our economy. We are hopeful that this accommodative move by RBI will foster the demand for affordable and mid-segment housing in this festive quarter and enable demand creation,” he said.
Surendra Hiranandani, the Chairman and Managing Director of House of Hiranandani also welcomed the move saying that it will induce optimism, encourage buyers’ confidence and propel pent-up housing demand.
“The pandemic has reinstated the importance of homeownership. Low-interest rates amidst the festive season, positive market sentiment and receding Covid-19 cases, together create a favourable condition for home-buying. To benefit from one of the best home-buying periods, homebuyers must immediately translate their plans into action and avoid prolonging them further,” he added.
The Reserve Bank of India (RBI) on Friday kept the repo rate unchanged for the eighth time straight and continued with an accommodative stance. The repo rate — the central bank’s lending rate — remains unchanged at 4 per cent and the reverse repo rate — borrowing rate — at 3.35 per cent.

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