Real estate developers welcomed major interest rate cuts on Friday, but said the RBI needed to take steps such as lump sum debt restructuring of builders’ loans, giving relief to the industry which has been badly hit by the lockdown.
He said that RBI needs to ensure that banks pass on the benefits to the customers. The industry expanded the moratorium on loan repayment, but felt it was not enough.
“The benefits offered by RBI to customers through reducing repo rates are not being passed on to customers by banks. A series of policy rate reductions will help all sectors, including real estate, due to contraction in demand. Is affected by and decreases its liquidity. By COVID 19.
“However, we are expecting for quick broadcasting of these works in the respective lending rates of the banks,” said Jaikai Shah, national president of CREDAI.
“We expected more stringent measures from the RBI to revive the economy. The real estate sector can act as a catalyst to revive the economy, supported by stringent fiscal and non-fiscal measures. The moratorium. The expansion step is a short-term slicing solution. A long-term problem, “said Satish Magar, president of CREDAI in a statement.
NAREDCO President Niranjan Hiranandani said the reduction in repo rate and extension of moratorium period were steps in the right direction.
“However, the industry is awaiting outright debt restructuring as a holistic measure to relieve industries across the board and help in its rapid revival,” he said. Sanjay Dutt, managing director (MD) and chief executive officer (CEO) of Tata Realty and Infrastructure, said this would provide some financial relief to borrowers with their equal monthly installments (EMIs) and make it cheaper to take new loans.
Sobha Vice Chairman and MD JC Sharma said: “It will further reduce home loan interest rates. Such low attractive minimum EMI will go up well for market sentiment and big economy. It will increase the demand for homes. Will inspire and give. It is very necessary for the current state of the economy. “
Ashish Purvanchara, MD, Purvanchal Limited, said: “Further reduction in repo rate will help ensure adequate flow of capital in the market. We hope that all banks will incorporate new announcements and provide benefits to loan seekers.”
Among property advisors, Anarok President Anuj Puri said that the cut in the repo rate would help banks reduce home loan interest rates, which could lead to many more fencing in the market.
Anshuman Magazine, President and CEO – India, South East Asia, Middle East and Africa, CBRE, said: “RBI’s move to cut the repo rate will have a positive impact on the residential property market. This is a clear step.” Reduce lending rates, encourage liquidity, preserve financial stability, and support overall economic growth. “
JLL India country head Ramesh Nair said that faster transmission of these benefits to the end consumer in the form of lower home loan rates will help improve their effective affordability.
“However, the real estate sector needs a one-time restructuring of debt, which is seriously ill due to the epidemic,” he said.
Dhruv Aggarwal, Group CEO, Housing.com and Proptiger.com, said the move would boost sentiment and demand in the residential sector.
He said, “It is necessary to see how quickly banks reflect this change in their rates.” ”
Knight Frank India CMD Shishir Baijal said it would have been a big relief if the restructuring of loans for the long-term real estate industry were allowed, with the measures announced on Friday.
Savings India CEO Anurag Mathur said the lowering of rates could help speed up the decisions of a section of home buyers in the next few months, if not immediately. “This will help reduce the EMI burden of customers during such critical times, provided that banks reduce rates.”
Among other developers, Supertech President RK Arora expressed disappointment that the one-time restructuring of the loan was not allowed.
Pradeep Aggarwal, chairman of Signature Global, said, “Now the situation may improve further for homebuyers as home loan interest rates are expected to come down further. Affordable housing will benefit the most as buyers of this segment will see EMI I am very special. “
ABA Corp director Amit Modi, director, said that banks need to cut the rate announced to the consumer in the end, otherwise the whole effort will go in vain.
Bhumika Group MD, Uddhav Poddar said the industry was expecting a lump sum restructuring of the loan, while Sushma Group executive director Prateek Mittal said the realty sector would benefit from the rate cut.
Industry demand should be met for outright restructuring of developers’ loans, Ankush Kaul, President (Sales and Marketing) – Ambience Group.
Kaushal Aggarwal, chairman of The Guardians Real Estate Advisory, said banks should immediately pass on the reduction in repo to ensure demand creation and liquidity infusion objectives.
Farsherd Cooper, MD, Spenta Corporation, said the announcement of an amendment to the repo rates and the extension of the moratorium on term loans provide much-needed relief to the economy and the realty sector.