Axis ecorp
Axis ecorp



RBI Should Be Hawkish, Says NAREDCO Chief

Dec 10, 2020
| By: Biz News Connect
| Source Link: Click Here

Realtors Happy At Low Rates Of Interest


MUMBAI, Dec 4 (BNC Network) - The monetary policy committee (MPC) decision to keep key rates unchanged was on expected lines and may continue in the near future to support growth as private consumption has slowly started and several stalled projects have been revived due to the government’s efforts, said ASSOCHAM and NAREDCO National President Dr. Niranjan Hiranandani.

The repo rate is kept unchanged at 4 % and the reverse repo rate at 3.35 %, but the Reserve Bank of India needs to have a hawkish stance while looking at the inflation figures and try to taper it further in order to mitigate the supply-side pressure.

“The proactive stance of the government to tackle the supply side issues would be instrumental in reducing the food prices further. As the numbers show that the economy is recuperating at a quicker pace than anticipated is a very good sign. There are several sectors which are showing an upturn consolidating the fact that the GDP growth numbers would be positive soon,” he said.

Home loans will continue to remain at attractive rates, this should augur well for home buying sentiment, he added.

The projected real GDP growth for FY21 at -7.5 per cent vs -9.5 per cent projected earlier augurs well for the recovery story. Q3 growth is seen at 0.1 per cent; Q4 at 0.7 per cent bears out the RBI Governor’s statement on business sentiment of manufacturing firms gradually improving.

RBI Governor’s proposal to expand on-tap TLTROs to cover other sectors is a positive move, the important thing he pointed out being that economic constraints have started to ease, he said.

Terming the RBI stand as a bold move, Aditya Kushwaha, CEO and Director, Axis Ecorp said, it will have a positive impact on real estate. Currently, home loan interest rates are already at a record low at below 7%-8%, which will be instrumental in building momentum towards the primary housing and holiday homes sector. This move can be seen as an impetus provided by the government to boost the real estate sector and elevate construction activities in the upcoming days. For new buyers, it will be a good time to take a home loan as the interest rates are low, Kushwaha said.

Jimeet Modi, Founder & CEO Samco Group, said although increasing inflationary tendencies have been acknowledged, little seems to have been done to contain the price index. In Fact it is assumed that CPI will cool down to below 5% in H1 of FY21-22. In all likelihood, inflation is not going lower given the massive helicopter money across the world created by central banks and run up in commodity prices such as crude, base metals. It is likely to remain elevated given that import restrictions are in place to support the domestic economy. Such a growth recipe will have unintended consequences of higher inflation not only in India but across the world which will be the bigger animal to tame a few quarters down the line. However, in the near term this will support recovery in financial markets and will keep the bulls charged in the capital markets. 

Amit Ruparel, Managing Director, Ruparel Realty, said “The MPC’s decision to maintain an accommodative stance is a positive measure to bring about adequate liquidity in the economy which was hit by the Covid-19 pandemic. The unchanged Repo Rate and Reverse Repo Rates at 4% and 3.5% respectively, will act as a catalyst to support growth and spur economic activity. This move will also provide the much needed encouragement to the real estate sector and revive the buying sentiments among homebuyers. The lower interest rates on home loans will further motivate homebuyers and fence-sitters to finally take the decision to buy their dream homes. We hope that the banks pass on the benefits of these rates to the homebuyers and enhance the recovery of the real estate sector. Additionally, it would also help to provide some relief to the developers by taking a conclusive decision on the Input Tax Credit.”

Bhushan Nemlekar, Director, Sumit Woods Limited, said "Keeping the inflation in mind, the RBI was expected to keep the rates unchanged. The real estate sector already had a good festive season and we can see the recovery is expected to strengthen further. The sector is already optimistic because of the increased buyer interest in real estate assets and we expect the demand to sustain in the next quarter as well.  The RBI has already announced several favorable measures this year for the real estate sector; however, more needs to be done such as the decision on Input Tax Credit and reduction in premiums at the State Government level."

Recent News

Building Smart House Construction Villa Residential Interior Resort News Villas Real Estate New Axis Ecorp Axis Yog Villas Investment Axis Blues Real Estate News Axis Lake City Axis KNCJ Darjeeling Aditya Kushwaha Goan Resort Living covid19 Feature holiday home Second home second home in goa holiday home in goa safe proprty investment home sales MOPA Airport project luxury yog villas real estate maintenance residential plots homebuyers increasing demand real estate sector villas in goa Villa in goa construction Villa industry experts Real Estate Expert invest launching new projects Reserve Bank of India Axis Lake City Plaza Sindhudurg Axis Group Tourism Holiday Commercial Plots Plots for sale commercial plot for sale villa plots plots in north goa Demand For Holiday Homes Real Estate Trends Farmhouses Holiday in Sindhudurg Memorable Holiday Realty Market Festive Season markets luxurious property Real estate developers business news luxury holiday home Real Estate Developers in Goa luxury Villas in north goa luxury villas in goa festive period Deloitte Report Covid-19 real estate market repo rate sbi real estate industry RBI interest rate Indian Real Estate maharastra Realty developer Mopa Airport luxury housing project Service Apartments luxury serviced apartments skill development world-class hotel ASDC inauguration reality recovery upcoming project goa airport smart suites in Goa union budget 2022-23 building construction inducing budget growth RBI bi-monthly policy review Monetary Policy Committee, housing prices Housing sales Axis KNCZ Darjeeling Second Home Market Retirement Home Second Home Market invest in real estate policy rate demand for second Home Goa property enterprise in Goa demand for second houses Home Loans commercial real estate perfect holiday Holiday Homes rbi home loans Home Loans Costlier real estate home Real Estate Investment Housing EMIs Interest Rate Hike increasing reporate Rbi policy budget 2022-23 investments investments in India property investments Real Estate Promoters in Goa Property Developers in Goa Plots For Sale in north Goa Property investment in goa raw materials luxury homes in Goa Nature Conservative Day housing market GST vacation homes in goa Virtual Land Lording Entrepreneur contributors FDI healthy growth retirement communities retirement homes Affordable housing home Buyers Luxury Housing Investment Resort Destination in Goa Holiday Homes in Goa Real Estate Develope in Goa Resort Destination Luxury vacation homes Top holiday homes Indian Real Estate Stands India’s real estate industry commercial operations Best Holiday homes Reputed Builders in Goa Buduget 2023 Budget 2023 Holiday homes in Goa real estate industry experts Holiday homes in north Goa fully serviced villa in goa villas in north goa with private pool invest in Indian real estate UnionBudget2023 budget expectations

Get in touch


At Axis Ecorp, we firmly believe that there is no shortcut to success. The Group’s endeavours reflect the value we place in building long-term relationships, offering personalised and transparent services, and staying ahead of the competition.

305, Gera Imperium Grand, Patto Plaza, Panaji, Goa 403001 (INDIA)
+91 807-000-4400
Mon-Sat: 7:00am - 7:00pm
Thank you!. Your message is sent successfully.
We're sorry, but something went wrong.
Enquire Now Tap To Call