RBI cuts key interest rate: Check reactions of major realtors on RBI's monetary policy review meeting

New Delhi: In an attempt to propel economy ahead of the general elections, the RBI on Thursday lowered the benchmark interest rate by 0.25 per cent, the second cut in a row, to the lowest level in one year on softening inflation. The central bank, however, kept monetary policy stance 'Neutral' over uncertainty over monsoon. It also lowered the GDP growth forecast for the 2018-19 to 7.2 per cent from 7.4 per cent predicted in February policy. Here's how major realtors reacted to the review meeting: Amit Modi, Director - ABA Corp, President (Elect) CREDAI (Western UP) “This is a good and much awaited development, since easing interest rate will help revive the investment cycle, especially in sectors like Real-Estate which are highly sensitive to interest rate movements. RBI’s decision of reducing its key policy rate by 25 basis points for the, second time in a row shows a softer stand towards lending. It’s good news especially for home loan borrowers with the RBI bringing down the key policy rate by 25 bps in its first bi-monthly monetary policy review of the financial year 2019-20, signalling lower interest rates. Hence we also hope that with this development, the banks will immediately pass on the cut to the home buyers, since that’s the confidence booster for the real buyer, and will finally lead to much needed investment spur in the sector, which will not only culminate in more launches in real estate sector, but more importantly timely project completions as well”. Mr Pradeep Aggarwal, Founder & Chairman – Signature Global India Pvt. Ltd and Chairman - ASSOCHAM National Council on Real Estate, Housing and Urban Development The RBI policy cut rates will not only be a positive outcome for the Real Estate sector, but also for the eligible new home borrowers who can take advantage of the subsidies scheme under PMAY (Pradhan Mantri Awas Yojana). This move will be a big boost for affordable housing and help for first time home buyers also the rate cut brings fetches confidence for the market as this will make availability of more money at the banks thereby lowering the EMI burdens. And to add icing to the cake, the government has also extended the time-limit of the PMAY scheme to March 31, 2020 for middle-income group buyers. Deepak Kapoor, Director, Gulshan Homz & Former, President, CREDAI Western UP “With RBI reducing the repo rate back to back this financial year, shows a softer stand towards lending. I am sure Bank’s would surely reduce the lending rates, though marginally, which can boost the sentiments in the market. Also with the push which the government showed towards affordable segment in the budget 2019 where the income tax rebate was extended to Rs 5 lak, I am sure end users would now be more motivated, to purchase their homes, post the repo rate cut.” Ashok Gupta, CMD, Ajnara India Limited The 25 basis point policy rate cut is anticipated to rejuvenate the real estate market as this step will give assistance in lowering the marginal cost of fund based lending rates (MCLR) thereby bringing in more availability of money at the banks. The RBI Policy rate cut will not only benefit the developers, but also will favour the homebuyers by lowering the EMI burden. Vikas Bhasin, CMD, Saya Group This is surprisingly a good development -- two back to back repo rate cuts this year -- and indeed a step in the right direction. It will help to ease the pressure off the market by attracting more number of buyers to invest in the real estate sector. It will accentuate the recent softness in momentum in the domestic economy. Dhiraj Jain, Director, Mahagun Group This is really good news especially for home loan borrowers with the RBI bringing down the key policy rate by 25 bps in its monetary policy review, signalling lower interest rates. With lower repo rates banks would be able to set the direction and reduce the level of interest rates, which eventually witness the increase of demand for homes in real estate sector. The year has been good so far with lot of policy measures being taken by the authorities that will help the sector improve its standing. Kamal Taneja, MD, TDI Infracorp The real estate segment is expected to pick up with RBI monetary policy's rate cut. The repo rate cut of 25 bases points will not only benefit the developers but will also favour the homebuyers. More money available in banks at a lower cost will result in increased purchasing power as there will be a lower EMI burden on the buyers. It will also lighten the liquidity crunch and lower the cost of finance for the developers. Such positive announcement by the RBI was much needed for the realty sector to take off. Harinder Singh Hora Chairman, Reach Group “The consecutive deduction is a positive move with general elections also just round the corner. The realty sector will surely see some positive sentiments with this cut. We can also expect another marginal cut in the June Review.” Amit Raheja, CMD, Wealth Clinic “A stance neutral policy by RBI is anticipated to revive the real estate sector to a great extent and also cue the banks for hiking or cutting lending rates. Not only developers, but even the end-users can also take advantage from the policy as the rate cut will minimize the marginal cost of fund based lending rates (MCLR) and make more money available in the banks thereby lowering the burden of EMI.” Prateek Mittal, Executive Director, Sushma Group “The second consecutive rate cut of 25 basis points by RBI in its monetary policy would provide relief to the borrowers and will provide a boost to the real estate segment. This move will certainly bring greater liquidity for the economy and is anticipated to revive the real estate sector to a great extent. The reduction in repo rate will help the borrowers of big-ticket loans like home loans which will certainly lead to the increased demand for homes”. Kaushal Jain, MD, Arihant Group “The repo rate cut by RBI will aspire the real estate sector to pick up their businesses in the market. It will be a constructive progression for the sector and is counted on with the RBI policy rate cut by 25 bps. This step is highly expected to rejuvenate the real estate market as it will give assistance in taking down the marginal cost of fund based lending rates (MCLR) thereby bringing in more availability of money at the banks.” Kushagr Ansal, Director Ansal Housing & President CREDAI Haryana A constructive progression for the real estate sector is counted on with the RBI policy rate cut by 25 basis points. This is surely going to boost the market as this is the second time in FY 2018-19 that the rates have been cut by 25 bps changing the reserve repo rate at 5.75%. The marginal cost of fund based lending rates is expected to be low which in turn infers the availability of more money the banks thereby benefiting both the end-users and the developers. Rajesh Goyal, MD RG Group and VP CREDAI NCR This is a good development, since easing interest rate will help revive health of businesses like Real-Estate which are highly sensitive to interest rate movements, but while it is indeed a step in the right direction, there is definitely more required to improve the sentiment towards investments in the country. The back to back repo rate cuts will boost the affordable and mid segment housing sales. Dhiraj Bora, General Manager, Corporate Communication, Paramount Group Now the repo rates are brought down by 25 basis points to 5.75 per cent from 6 per cent, we are assuming the banks would pass on the rate cut in a similar direction. From the point of view of the real estate sector, the lowered interest rates on home loan EMI is likely to give another sign of relief after Interim budget. Sagar Saxena, Project Head, Spectrum Metro The 25 basis point policy rate cut is anticipated to rejuvenate the real estate market as this step will give assistance in lowering the marginal cost of fund based lending rates (MCLR) thereby bringing in more availability of money at the banks. The RBI Policy rate cut will not only benefit the developers, but also will favour the homebuyers by lowering the EMI burden. Harvinder Singh Sikka, MD, Sikka Group Developers are working hard to bring real estate back on track and Government is also supporting us in every possible way. We believe that the decision to reduce a repo rate by 25 basis point will prove beneficial from a consumption and lending perspective, thereby boosting economic growth. This was a surprise announcement for both developers and buyers.