Realtors’ policy is welcomed by labu; low mortgage interest rate to boost housing demand

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“Real estate, in particular the residential segment, has benefited greatly from the historically low underlying lending rates. This will probably continue to gain momentum as demand has remained stable over the past few quarters,” said Anurag Mathur, CEO of Savills India.
Property developers and property advisers on Thursday welcomed the RBI’s decision to keep rates unchanged, saying historically low mortgage rates would continue to boost demand for residential property.

They also encouraged potential buyers to enter the market.

The demand for housing has increased by about 50-70% in the last calendar year in 7-8 large cities, due to various factors such as low mortgage interest rates, free offers from real estate developers and the stability of real estate prices over the past five years.

Commenting on the RBI’s policy, CREDAI Chairman Harshwardhan Patodia said: “The excess liquidity available in the system needs to be provided to sectors that can create massive jobs and foster faster economic recovery and growth.”Naredco Vice President Niranjan Hiranandani said that the favorable market dynamics in terms of mortgage interest rates continues for homebuyers. “However, trends indicate that this ‘historic low’ may not last long and that housing applicants would be encouraged to take out a mortgage at such low rates,” he Added.

CREDAI-MCHI President Boman Irani welcomed the RBI’s policy and said, “This decision will serve as a catalyst for the continued demand for housing, when buyers will be able to take advantage of the lowest mortgage rates and realize their dream of owning a home. Sanjay Dutt, MD and CEO of Tata Realty and Infrastructure Ltd, said the decision to keep rates unchanged would help maintain current lending rates, which would help buyers buy their dream home at historic rates ahead of the expected market revision in the second half of 2022.
Anarock Chairman Anuj Puri said the policy was good for mortgage borrowers.

“The continuation of this low interest rate regime maintains the overall availability environment for some time to come. While the window of opportunity for buyers to take advantage of low interest rates has been extended for some time, it is unlikely to last much longer – sooner or later repo rates will rise,” he Added.

“We are optimistic that this stable position bodes well for mortgage borrowers and the Indian real estate market,” anshuman, president and CEO of CBRE in India, Southeast Asia, the Middle East and Africa, told the magazine.

Dhruv Agarwala, Group Managing Director, Housing.com and Makaan.com , said that interest rates on mortgages will continue to fluctuate at a record high, encouraging buyers to purchase real estate.

The CEO of Knight Frank in India, Shishir Baijal, said that the housing market is showing a healthy rebound after the Covid crisis and that low interest rates will help improve accessibility and maintain the growth rate.

Colliers India CEO Ramesh Nair said: “In the absence of specific measures to boost demand in the 2022-2023 budget, potential buyers could continue to benefit from the lower mortgage interest rates that will remain for the time being.”Amit Goyal, CEO of India Sotheby’s International Realty, said that historically low mortgage interest rates would persist for some time and maintain morale.

“Real estate, in particular the residential segment, has benefited greatly from the historically low underlying lending rates. This will probably continue to gain momentum as demand has remained stable over the past few quarters,” said Anurag Mathur, CEO of Savills India.

Samantak Das, chief economist and head of JLL’s research and development in India, said the RBI’s decision was extremely welcome for the Indian real estate sector.
Bangalore-based CEO of Puravankara Ltd Abhishek Kapoor said the move would allow more consumers to enter the market and invest in real estate.

Record low borrowing rates will further boost the real estate sector, said Atul Banshal, Chief financial officer of Omaxe Ltd.
Supertech Chairman RK Arora said the unchanged repo rates would help keep the interest rate regime low, which works well for buyers considering buying homes with mortgages.

The announcement will certainly improve market sentiment and lift the housing sector, said Santosh Agarwal, chief financial officer and chief executive of Alpha Corp.

Sandeep Ranwal, MD, of the Runwal Group, said that while keeping interest rates unchanged, the RBI had made it clear that it wanted sustained growth and increased consumer sentiment.

Farshid Cooper, MD, spenta Corporation, said it was a relief for Indian buyers that interest rates will remain unchanged in the near future.
RAM Raheja, director of s Raheja Realty, said the regime of low mortgage interest rates had helped to further stimulate the Indian real estate sector, which ultimately led to an increase in investment and home purchases over the past two years.

“This status quo will create a demand for high-involvement products, such as real estate. Liquidity, coupled with low interest rates, is the key to the recovery of the real estate sector and the economy as a whole,” said Shrei Eren, managing director and head of Berkshire Hathaway Home Services Orenda.

Kaushal Agarwal, chairman of the Guardians real estate advisory council, called this good news for the housing market, as the historically low regime of interest rates has always pushed the real estate market.
According to Vikash Chaturvedi, CEO of Xanadu Realty, this would be the perfect time for homebuyers and businesses looking for real estate.
Siraj Sayyad, director of the ARETE Group, said the current low interest rate regime would persist for some time. “With this step, accessibility conditions will improve for mortgage borrowers,” he Added.

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