Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Industry / Banking/  Unchanged repo rate, more liquidity: What RBI Policy means for real estate sector
BackBack

Unchanged repo rate, more liquidity: What RBI Policy means for real estate sector

The measures announced by the RBI Governor today for liquidity enhancement in the economy is indeed a good step and was much required, said Dhruv Agarwala, Group CEO, Housing.com, Makaan.com and Proptiger.com

Oberoi Realty is one of Mumbai’s largest real estate developers and has developed over 40 projects across the city, aggregating about 11.30 million sq. ft. Photo: Ramesh Pathania/MintPremium
Oberoi Realty is one of Mumbai’s largest real estate developers and has developed over 40 projects across the city, aggregating about 11.30 million sq. ft. Photo: Ramesh Pathania/Mint

The real estate sector hailed the Reserve Bank of India's decision to keep interest rates unchanged in the Monetary Policy. The central bank's Monetary Policy Committee on 5 February, kept the repo rate unchanged at 4%, citing softening prices. The reverse repo rate also stayed unchanged at 3.35%. The policy maintained accommodative stance.

"The decision to maintain the repo rate and reverse repo rate by the RBI is in line with expectations. This status quo will further allow demand creation including for high involvement products like real estate," said Shishir Baijal, chairman & managing director, Knight Frank India.

Coronavirus pandemic has severely affected the real estate sector in the country. With measures announced by the government, reduced repo rate and stamp duty cut in Maharashtra and Karnataka, the sector has been showing signs of recovery in the last few months.

The central bank also proposed to provide funds from banks under the TLTRO ‘on tap scheme’ to NBFCs for incremental lending to these sectors.“With a view to support revival of activity in specific stressed sectors that have both backward and forward linkages and have multiplier effects on growth, the RBI had announced the TLTRO on Tap Scheme for banks on October 9, 2020," Das said. Sectors such as retail, micro, agri, infra, MSME, pharma, and healthcare are eligible for fund deployment under the scheme.

"The measures announced by the RBI Governor today for liquidity enhancement in the economy is indeed a good step and was much required. Real estate has been badly hit during the pandemic and the recent Budget announcements and the RBI's decision today will help the sector to cope up with markets’ uncertainties better in the near future," said Dhruv Agarwala, Group chief executive officer, Housing.com, Makaan.com and Proptiger.com.

"RBI's resolve to keep easy system liquidity and low interest is key to the recovery of the real estate industry and the overall economy. The real estate sector is showing signs of recovery and needs government hand-holding. RBI's announcement on LRS will help boost remittance, NRIs have been huge investors in Indian real estate," Krish Raveshia, chief executive officer at Azlo Realty.

"Certainly, the real estate industry always aspires for reduced interest rates. Housing demand is reviving, and this demand needs to be fostered. However, the RBI's current stance is absolutely justified, given the unique circumstances," said Anuj Puri, chairman - ANAROCK Property Consultants.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Industry News, Banking News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 05 Feb 2021, 12:23 PM IST
Next Story footLogo
Recommended For You
Banking Stocks
₹1,053.6-0.5%
₹1,440.70.52%
₹1,0841.08%
₹122.751.3%
₹734.052.53%
Switch to the Mint app for fast and personalized news - Get App