We welcome the RBI’s initiative through which it has attempted to augment liquidity to some extent and also has provided a respite to the commercial real estate. The additional liquidity will help in boosting demand in the market in core sectors of real estate and automobiles. The move shall also help in the completion of stalled projects in the sector and result in increased buyer confidence. However, we were hopeful of an announcement that would directly induce the home buyers to buy homes with a reduced rate of interest. Being an interest-sensitive sector, the RBI’s decision to not lower interest rates has come as a disappointment to the real estate industry. The urgency to take direct measures for consumers to revive growth in the residential real estate was the need of the hour in the present scenario as it would have persuaded potential customers to firm up their decision to buy their dream home. With RBI maintaining the status quo on policy rate front, it is also important to focus on improving the transmission of the past rate cuts as the repo rate is still very near the historical low. We had certain expectations from the government from the recent budget which have not been fulfilled which includes our demand for Industry status, single window clearance and reinstatement of Input Tax Credit in GST amongst others. The real estate sector is one of the few sectors which have the potential to kick start a sluggish economy. Going forward, we hope that the government looks into some of the key concerns raised by the industry and addresses the same soon with the necessary steps to create housing demand across segments.
Mr. Surendra Hiranandani, Chairman, and Managing Director, House of Hiranandani