RBI Maintains Status Quo, Realtors Rely On Augmented Demand

The RBI retained the established order as the MPC voted overwhelmingly to keep the rates stable. The repo rates remained unchanged at 4% and the RBI expects significant growth in Q3 and Q4. Some additional announcements were expected from the real estate sector; however, the industry has only to rely on the announcements made in the last few months. Real estate experts feel that demand is healthy and that the current RBI status quo would have no adverse effect on it. 

The announcements of repo rate cuts by the banks through the lockdown have helped the reeling market of real estate. Aloof from the rate cuts, RBI has also gone ahead with proposals such as rationalisation of risk-weightage norms, restructuring of loans based on the projects, linking home loans to LTV, the intensity of policy changes made within few months reflect the positive intent of authorities to support major sectors like real estate. 

The obligation to lend continuous support rests solely on the swift disbursement of funds by banks. Home loan interest rates are at their lowest level, which has already seen a positive effect in the residential segment during the holiday months. The next quarter is likely to see more of this and a flattering curve,” says Yash Miglani, MD Migsun Party. 

Flexibility to lower prices if the economy needs help shows a hopeful indicator for the future. Residential real estate backed with festive offers and deferment payment plans has been faring well post-unlock. The sector is expecting GDP growth for 2021 projected at 7.5% of the realty sector that can provide a significant share in the overall economic development.

Real estate sales have developed, especially after home loan interest, and it will further grow if other states reduce stamp duty after the announcements made by Maharashtra, Karnataka, and Madhya Pradesh. The sector will serve a lot as the demand is already high and reduction in stamp duty will provide a further boost and the sales figures over the last few months are evidence that buyers are enjoying the low home loan interest rates.