As RBI Governor Mr.Urjit Patel today maintained status quo on key rates at his bi-monthly monitoring policy review meeting.
Real Estate Industry Reaction on RBI Monetary Policy Review is as under:
Mr.Prashant Tiwari, Chairman, Prateek Group, said "The announcement is according to the market dynamics and the rates will only reduced once the inflation settles down. Although government is taking corrective measures for economic growth and stability, there is a need to adopt a balanced approach considering the growth of key sectors like real estate. Homebuyers have been waiting for reduction and they will swarm the real estate market thereby helping the sector regain the glorious days".
Mr.Saurabh Jindal, Joint Managing Director, SVP Group, said "We believe that the RBI has kept the rates unchanged looking at the inflation factor and it is unlikely that rates will be changed before the effects of GST comes into effect or the better effects of monsoon are visible on economy. However, in real estate we are hopeful that lending rates may still come down looking at the government's focus on housing for all. Hoping for the best, we can say that it has been long due and will help in reviving the market sentiments".
According to Deepak Kapoor, President, CREDAI Western UP "Real Estate sector was very much in need of a rate cut even if it was to be of 25-50 basis points. 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 and most of the projects in Noida & Greater Noida nearing completion and readying for possession soon. 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".