RBI Monetary Policy & Real Estate_Comment from Lincoln Bennet Rodrigues, Chairman & Founder, The Bennet and Bernard Company, known for luxury holiday homes in Goa.

New Delhi, October 10, 2021: RBI maintaining status quo on key policy rates was expected given the inflationary concerns in recent months and also maintaining financial stability and boost demand during the ongoing festive season. Residential demand is reviving in the pandemic context and this needs to be fostered. We have already seen early signs of improvement in economic activity following the easing of restrictions post the peaking of the second wave. Given the upcoming festive season, which is considered auspicious by a large number of Indians to make big-ticket purchases, the timing of reduction in interest rate by banks recently couldn’t have been better and will lead to a substantial increase in sales. The low interest rate regime is going to be a game-changer for the whole real estate sector especially at a time when the economy is on a recovery trail. For any investor, it’s a time of great opportunity and for the end-customer, it’s a good time to buy. While the impact of Covid 19 has been high on specific segments, the luxury and second home sentiment has not been impacted as much. We hope that the government continues to pay attention to the requirements of the sector, which is one of the largest employers in the country. 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. The sector is set to become a large driver of the economy with its contribution to GDP projected to increase from the current 7 per cent to 13 per cent by 2025. Overall, we hope the government takes measures which strengthen the real estate sector and affirms robust infrastructure growth.

Corporate Comm India (CCI Newswire)