Reaction from Mr. Surendra Hiranandani, Chairman and Managing Director, House of Hiranandani

New Delhi, August 07, 2020: We expected more stringent measures from the RBI booster to revive the economy. A cut in the policy rate could have helped stimulate growth and demand particularly in the wake of Covid 19 crisis. The urgency to take direct measures for consumers to revive growth in the residential real estate was the need of the hour in the present scenario as it would have persuaded potential customers to firm up their decision to buy their dream home. With RBI maintaining status quo on policy rate front, it is also important to focus on improving the transmission of the past rate cuts as the repo rate is still at a historical low. An amount of Rs 10,000 crore of additional liquidity provided to NABARD and National Housing Bank is a welcome move as it will help the NBFCs and housing sector to tide over the liquidity crisis.

Residential sales across cities are gradually reviving with the lockdown being lifted. The fence-sitters will have no better time to buy than the current period. People have already assessed the importance of owning a home, considering the Covid 19 crisis now. They can take advantage of the numerous offers coupled with the attractive home loan rates.

Going forward, the real estate sector requires additional support at this stage as it can act as a catalyst in resurrecting the economy, backed by stringent fiscal and non-fiscal measures. Furthermore serious and effective steps are required to be taken to boost the demand side of the economy and spur consumption which we hope will happen soon. We need to drastically and aggressively lower interest rates to kick start the economy. We hope the RBI will continue to take positive steps for the economy at large, and make it enticing for home buyers.

Corporate Comm India (CCI Newswire)