Comments on RBI Monetary Policy by Lincoln Bennet Rodrigues, Founder and Chairman, Bennet & Bernard Group, known for luxury holiday homes in Goa

New Delhi, August 07, 2021: Keeping in mind the current scenario, a slight reduction in the key rates would have been widely celebrated as low interest rates have been a crucial factor in the revival of the demand in the real estate sector overall. We have already seen early signs of improvement in economic activity following the easing of some restrictions post the peaking of the second wave. To bolster this growth and revive the economy, a rate cut would have further improved the liquidity situation, which is vital for the real estate sector. While the consumer is enjoying low home loan rates currently, a cut would have further intensified demand. A continuation of low interest rates regime works well for borrowers. There is a need for stimulant policy measures that would enhance and ease credit provisions and increases buyer’s confidence. Any announcements in these forms would have been appreciated.

As the nation recovers from the second wave of pandemic, there is a dire need to provide monetary policy support – on account of both easy availability and lower cost of funds – to households and businesses alike.  A rate cut have made a world of difference for the end consumer as well as the investor. We would also like to see measures to enhance demand in the real estate sector by lowering of stamp duty and registration charges in the near future. While the impact of Covid 19 has been high on specific segments, the luxury and second home sentiment has not been impacted as much. The perception of lifestyle has changed in response to the new reality which is driving demand for premium properties. The luxury housing segment has remained largely insulated from the slowdown because the market is driven by end users at the top of the pyramid who have not been deeply impacted unlike other housing categories, where they had to defer purchase decisions.

Corporate Comm India (CCI Newswire)