Economy

Comments from real estate experts on the RBI’s Policy announcement in the off-cycle meeting – May 04, 2022

Comments from real estate experts on the RBI's Policy announcement in the off-cycle meeting - May 04, 2022
Comments from real estate experts on the RBI's Policy announcement in the off-cycle meeting - May 04, 2022

Mr. Kaushal Agarwal – Chairman, The Guardians Real Estate Advisory
“The RBI’s decision announced in the off-cycle meet today was aimed at re-anchoring inflation expectation and will eventually result in the strengthening of growth prospects. The decision also ends the all-time low home loan interest regime, which boosted the housing demand and helped the economy to get back to the pre-COVID levels. Thus far, the RBI’s approach towards tackling the situation created by the pandemic and steps taken to help revive the economy will go down in history as being extremely pragmatic. These steps have enabled a robust recovery in the real estate sector. The latest move by the RBI along with the rise in input cost on construction might temporarily limit the growth momentum of the sector.”

Mr. Pritam Chivukula – Co-Founder & Director, Tridhaatu Realty and Treasurer, CREDAI MCHI
”After two years of unchanged repo rate at 4%, RBI ‘s decision to hike the interest rate by 40 bps to 4.40% has come as a sudden surprise to the real estate industry in an off-cycle monetary policy meeting held today. In keeping with the stance of withdrawal of accommodation, the sharp acceleration of rates will affect the homebuyers with concerns of EMI on home loans. The State Government which is the largest beneficiary of housing demand should come forward to support the home buyers by reducing stamp duty rate to 3%.”

Ms. Shraddha Kedia-Agarwal, Director, Transcon Developers
“RBI’s decision to hike the policy rates was anticipated on the back of very high inflation. We have already started seeing a vertical movement in the home prices and the decision will further put a dent on the homebuyer’s sentiments impacting the overall demand.”

Dr. Sachin Chopda, Managing Director, Pushpam Group
”In an off-cycle monetary policy meeting, the RBI increased the repo rate to 4.4% for the first time in almost two years. This has come as a shock to the entire real estate industry impacting investor’s decisions directly as the home loan rates may increase anytime soon. This will create a huge impact on the long-term goals by the investors.”

Mr. Bhushan Nemlekar, Director, Sumit Woods Limited
”It is not very surprising that the RBI has increased the repo rates by 40 basis points keeping the inflation of our country as a major concern in mind. With the increasing prices of property, this decision is a huge setback for the real estate industry disrupting the ongoing growth momentum in the sector.”

Mr. Jitesh Lalwani – President, Homesync Real Estate Advisory
”RBI’s surprise move to increase repo-rate by 40 basis points in the emergency meeting will create a hitch for the realty industry soon. The banks will anytime start increasing the interest rates on home loans that shall impact the homebuying decision going forward. We urge the Government to act upon the situation to support the realty sector and in favour of homebuyers.”

This article was shared with Prittle Prattle News as a Press Release.

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