Realtors' Hail RBI Policy; Low Interest Rate On Home Loan To Drive Housing Demand

 The RBI's decision to maintain policy rates steady was applauded by real estate developers and consultants on Thursday, who said historically low interest rates on home loans will continue to stimulate demand for residential properties.

They also encouraged potential homebuyers to get involved in the market.

Housing demand grew by 50 to 70% in 7-8 large cities last calendar year, owing to reasons such as low interest rates on home loans, freebies from builders, and steady property prices over the previous five years.

"Surplus liquidity available in the system must be made available to sectors that can result in mass employment generation and aid in a faster recovery and economic growth," CREDAI President Harshvardhan Patodia said of the RBI policy.

The favourable market dynamics in terms of house loan interest rates, according to Naredco Vice-Chairman Niranjan Hiranandani, persist for home buyers. "However, trends indicate that this 'record low' may not last long, and home buyers should take advantage of the low rates while they still exist," he added.

"This step will function as a catalyst to the ongoing housing demand," CREDAI-MCHI President Boman Irani said, "where homebuyers would be able to benefit and enjoy the lowest home loan rate and realise their dream of buying a house."

The decision to leave the rates unchanged, according to Sanjay Dutt, MD and CEO of Tata Realty and Infrastructure Ltd, will help to maintain current loan rates, allowing home buyers to purchase their ideal home at historic rates till the predicted market revision in the second half of 2022.

Chairman of Anarock This strategy, according to Anuj Puri, is beneficial to house loan borrowers.

"For a little longer, the low-interest rate regime will maintain the overall affordability environment. While the window of opportunity for homebuyers to take advantage of low-interest rates has been prolonged for a while longer, it is unlikely to last much longer - repo rates will rise sooner or later "Added he.

"We are hopeful that this stable approach would bode well for home loan borrowers and India's real estate industry," said Anshuman Magazine, Chairman & CEO of CBRE in India, Southeast Asia, the Middle East, and Africa.

Home loan interest rates will continue to linger at record low levels, according to Dhruv Agarwala, Group CEO of Housing.com and Makaan.com, encouraging purchasers to purchase property.

Knight Frank India's Managing Director According to Shishir Baijal, the housing market has recovered well from the Covid crisis, and low interest rates would contribute in boosting affordability and maintaining growth momentum.

"In the absence of concrete demand-side initiatives from the Budget 2022-23, potential homebuyers can continue to benefit from lower house loan interest rates, which are here to stay for the time being," Colliers India CEO Ramesh Nair said.

The historically low house loan interest rates, according to Amit Goyal, CEO of India Sotheby's International Realty, will remain for a little longer, keeping the mood upbeat.

"To a significant extent, real estate, particularly residential real estate, has profited from historically low benchmark lending rates. As demand has remained stable in previous quarters, this is anticipated to continue to strengthen "Savills India CEO Anurag Mathur stated.

The RBI's decision is tremendously good for the Indian real estate market, according to Samantak Das, Chief Economist and Head, Research and REIS, India, JLL. Puravankara Ltd CEO Abhishek Kapoor, based in Bengaluru, stated that this decision will allow a broader demography of consumers to enter the market and invest in real estate. According to Atul Banshal, Director Finance, Omaxe Ltd, the real estate sector will benefit even more from the record-low lending rates.

The unchanged repo rates, according to Supertech Chairman R K Arora, will help to preserve the low-interest rate environment, which is good for homeowners using house loans.

According to Santosh Agarwal, CFO and Executive Director of Alpha Corp, the announcement will "definitely enhance market sentiments and provide cheer to the housing sector."

MD of the Runwal Group The RBI has clearly signalled that it is striving for sustainable growth and encouraging consumer confidence by leaving interest rates constant, according to Sandeep Runwal. Farshid Cooper, MD of Spenta Corporation, said that the fact that interest rates will remain stable in the foreseeable future is reassuring for Indian homeowners.

A low house loan interest rate regime, according to Ram Raheja, Director of S Raheja Realty, has been critical in further supporting India's real estate market, resulting in increased investment and home purchases in the last two years.

"This current condition of affairs will increase demand for high-involvement products, such as real estate. The key to the real estate industry's and broader economy's recovery is liquidity combined with low borrowing rates "Shrey Aeren, Berkshire Hathaway Home Services Orenda's Managing Director and Country Head, stated.

It's fantastic news for the property industry, according to Kaushal Agarwal, Chairman of The Guardians Real Estate Advisory, because historically, a low-interest-rate environment has always propelled the real estate market. According to Xanadu Realty CEO Vikash Chaturvedi, this is a perfect time for homeowners and corporates searching for properties to make positive decisions.

The current low-interest rate regime, according to Siraj Saiyad, Director of ARETE Group, will last for a while longer. "With this action, the affordability climate for house loan customers would improve," he noted.

Conclusion

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