Friday 8 April 2022

Ramesh Nair, CEO, Colliers India and Managing Director, Market Development, Asia, Colliers

RBI continues to keep the repo rate unchanged for the 11th time in a row, at 4%, keeping an ‘accommodative’ stance during its first monetary policy meeting for FY 2022-23. This will greatly help the economy recover to pre-Covid-19 levels at a time when the economy is steadily gaining ground. The geopolitical scenario on the global front and other challenges have led the RBI to lower its growth forecast to 7.2% from 7.8% for FY2022-23. However, the Indian economy appears to be well placed to withstand the shock supported by its forex reserves and stable financial sector. From a real estate perspective, the unchanged repo rate will continue to provide elbowroom to homebuyers, since home loan rates are at a record low.  The housing sector saw a revival in 2021 and the continued low home loan rates can further propel homebuyers’ sentiments. The RBI hiked its reverse repo rate, which was expected due to inflationary tendencies seen in the economy.
Amit Goyal, CEO, India Sotheby’s International Realty

We appreciate RBI's stance to defend the growth momentum of the  Indian economy and keep key rates unchanged. This is significant for the housing sector, which has just about regained its sales velocity. The industry is already feeling the heat of rising input prices with inflationary pressures. Keeping home loan rates benign is of utmost importance to give a long leg to the sector's recovery, which in turn will have a positive growth impact on several ancillary industries.

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