New Delhi, August 10, 2016: According to Mr. Deepak Kapoor, President, CREDAI Western UP, “Though it was an anticipated move, we were still banking upon RBI to slash down rates. The risk of inflation which continues to be on an upper side is a reason that rates haven’t been reduced. However, real estate sector was very much in need of a rate cut even if it was to be of 25-50 basis point. But, similar to last time, this policy review also did not brought any relief to the real estate sector as status quo was maintained. The realty sector is already under immense pressure due to negative market sentimentsand lost demand. Besides this circle rates in NCR parts like Noida, Greater Noida and Ghaziabad have been increased. Also Registry charges in Noida have gone up this year. Then GST might also lead to increase in property prices. Therefore, in such a scenario, rate cut was the need of the hour to provide the much needed boost to the sector and to facilitating growth on the other hand.”
Mr. Prashant Tiwari, Chairman, Prateek Group said, “The unchanged policy rates were in line with our expectations, given the rise in CPI inflation over the last quarters. But it is expected that as economic growth would spur, there would be more chances of rate cut in future. We were expecting a rate cut as the circle rates and registry charges of some NCR regions like Noida, Greater Noida & Ghaziabad have increased which would increase the property rates. Thus, any reduction in interest rates would have optimistically affected the real estate sector and would have enhanced growth. We are now expecting that the rates would be slashed in next policy meeting which would help in imparting liquidity to the market. We are eyeing for healthier market conditions in near future so that demand and interest may improve in property market.”
Mr. Gaurav Gupta, General Secretary, CREDAI Raj Nagar Extension said, “RBI has kept the rates unchanged and looks like it has adopted a wait and watch policy with respect to the monsoons as well 7th pay commission as both these factors might spur demand and kick off inflation further. Consumer Price Index has already risen from central bank’s target of 5.1% to 5.7% which has made central bank to keep the policy rates stable. We believe that ease in rates would be given in the latter half of this year. Also it seems that focus remains on transmission of already reduced rates to the end users. Therefore banks should not refrain themselves from passing down the benefit of reduced rates to the borrowers. We hope that successor to Mr. Rajan would slash down rates which would eventually revive the market sentiments of a rate sensitive sector like real estate.”
Mr. Sushant Muttreja, Chairman, Cosmic Group said, “The status quo during this policy review was down the expected lines. However, rate cut would have improved the scenario in real estate market. Already there is lot of inventory pile and on the other hand there has been a hike in circle rates and registry charges of certain NCR parts. All these are not favorable for the real estate market at present. Therefore we were advocating rate cut in this policy review. But, we are expecting a boost for real estate sector with RBI’s next announcement and it should eventually bring a positive trend in the real estate sector.
Mr. Zafar Akbar, Chairperson, Exalter Group said, “RBI has held the interest rates steady which was a very much anticipated move. To keep inflation under control there was little room left for a rate cut in this policy review. But then for real estate sector a rate cut was desirable as property market is going through a turbulence phase. There is a huge supply demand mismatch which has really impacted the realty sector. On the other hand, the GST implementation might trigger the property prices in future. Therefore, reduction in rate cut was very much needed to stimulate growth. This would have reduced the amount of EMI’s eventually reducing the burden of home buyers to a large extent.”
Corporate Comm India (CCI Newswire)