The real estate sector of India is struggling to increase sales. The launch of new projects has come down in many cities to keep the unsold stock in control. There are queries from the customers but the sales are yet to pick up. In such scenario the veterans feel that the buyers are yet to gain more reliability in their assessment of affordability of the real estate products and properties. Some feel, it may be the buyers are waiting and watching the market trend. Most feel that the scenario suggests that trigger could work like an interest rate cut or surge in the GDP or such positive metrics of the economy.
Know more: Before investing check builders credibility
In this situation the real estate sector was looking towards the RBI to slash interest rates which would have put fresh energy to the sector but the reason why RBI sticks to its policies are to tame the inflationary forces, feels many realtors.
The industry feels that to make the mission of “Housing for All” successful we need liquidity and in this situation a cut in the interest rates would have surely helped in that aspect and would have been a blessing to the real estate industry.
The RBI declared that the Repo rate will continue to be 8 percent and the (CRR) Cash Reserve Ratio will be retained at 4 percent. Commenting on this aspect, the RBI governor Raghuram Rajan said that it is too early for the RBI to shift its stance but on a good note he hinted that an interest rate cut can happen early next year if the inflationary forces are under control and the government wills to act on the fiscal side of the economy.
The industry opines that at a time when the real estate industry is not faring so well the RBI can’t just administer reformatory measures but has to fetch the industry more liquidity with measures as rate cuts which would really boost the industry metrics. They expect RBI to make reviews and take action at the earliest.
Although in the bi-monthly review of the RBI policies, the governor said there are plans of easing the rate to 6 percent. The capital market and financial market experts also feel that a rate cut would lower mortgage rates too and this would cater to the demand channels of the industry. They feel as the economy has started getting better results especially on the fronts of inflation control a decrease in the interest rate can be expected and will be welcomed by the industry. The market experts feel that the real estate sector may have to wait for some more time to witness a slash in the key rates.
Know more: Before investing check builders credibility
In this situation the real estate sector was looking towards the RBI to slash interest rates which would have put fresh energy to the sector but the reason why RBI sticks to its policies are to tame the inflationary forces, feels many realtors.
The RBI declared that the Repo rate will continue to be 8 percent and the (CRR) Cash Reserve Ratio will be retained at 4 percent. Commenting on this aspect, the RBI governor Raghuram Rajan said that it is too early for the RBI to shift its stance but on a good note he hinted that an interest rate cut can happen early next year if the inflationary forces are under control and the government wills to act on the fiscal side of the economy.
The industry opines that at a time when the real estate industry is not faring so well the RBI can’t just administer reformatory measures but has to fetch the industry more liquidity with measures as rate cuts which would really boost the industry metrics. They expect RBI to make reviews and take action at the earliest.
Although in the bi-monthly review of the RBI policies, the governor said there are plans of easing the rate to 6 percent. The capital market and financial market experts also feel that a rate cut would lower mortgage rates too and this would cater to the demand channels of the industry. They feel as the economy has started getting better results especially on the fronts of inflation control a decrease in the interest rate can be expected and will be welcomed by the industry. The market experts feel that the real estate sector may have to wait for some more time to witness a slash in the key rates.
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