MMR housing sales grow 33 per cent year on year in Jan 2021: Report

 The Mumbai Metropolitan Region (MMR) has witnessed 33 per cent year-on-year growth in housing sales in January 2021, with all micro-markets in the region continuing the sales momentum despite a 1 per cent increase in stamp duty, indicated a joint report by CREDAI MCHI and CRE Matrix released today.

CREDAI MCHI, which represents over 1,800 developers in MMR region, has now tied up with analytics firm CRE Matrix to publish monthly research reports tracking property sales in MMR. CREDAI MCHI President Deepak Goradia released the first edition of “MMR Property Tracker” which analysed the trends in eight key housing micro markets in MMR.

Giving in to the persistent demand of Mumbai developers, Maharashtra government had on August 26, 2020 announced a 3 per cent cut in stamp duty on property sales till December 31, 2020, and a 2 per cent cut in duty between January 1 and March 31, 2021. Driven by the substantial 3 per cent cut, December 2020 had registered record property sales in MMR realty market.

MMR Property Tracker said a total of 1,38,728 housing units valued at Rs 96,956 crore were registered in MMR from September 2020 to January 2021. The property sale registrations bottomed out from the peak of 48,624 registrations in December 2020 to 28,366 units registered in January 2021, but they were higher than 25,640 units registered in November. Compared to average 12,000 units sold in pre-COVID era in January each year, January 2021 witnessed sales of 18,839 units  

The effect of year-end discounts in December 2020 was carried forward to January 2021 as well as the month witnessed sales better than the months of Sep, Oct and Nov’20. The value of registrations in December 2020 stood at INR 36,772 Cr, which is 162% more than the average of previous three  months.  The value of registrations in January 2021 stood at Rs  19,099 Cr, which is 36% higher than the average registration value for Sept-Nov 2020 period,” the report said.

Key findings of MMR Property Tracker:

- Central Business District (CBD) Mumbai, one of the most expensive housing markets in India which has been struggling since almost half a decade, witnessed renewed enthusiasm from the HNI’s, as they opened their wallets to acquire properties, with 48% y-o-y growth in units sold in January 2021, with an average ticket size of Rs. 1.6 crore

- In Central Mumbai, the period from September 2020 to December 2020 showed a hockey-stick like increase in value of units registered, which truly captures the positive effect of stamp duty reduction taken by the state govt. Also, the value of sales in January 2021 which stood at Rs 2,173 Cr. was almost twice the monthly average of value of units sold in previous 3 years.

- In Central Suburbs, the value of sales in January 2021 which stood at ₹ 1,069 Cr was a substantial 71% more than the monthly average of value of units sold in previous 3 years, with an average ticket size of Rs 2.1 crore

- Western Suburbs and Eastern Suburbs witnessed 58% and 71% y-o-y growth in sales with an average ticket size of Rs 1.1 crore. This sales momentum is expected to continue further as pandemic effect is slowing down and fence-sitters are now going ahead and taking the property investment plunge.

- Across Thane, 30% more units were sold as compared to January 2020, with an average ticket size of 41 lacs. Raigad, largely known to be an affordable housing market, oversaw a y-o-y growth of 23% in housing sales. 

CREDAI MCHI President, Deepak Goradia, shares his comments “The past few months have re-laid the foundation of the Real Estate sector not just in MMR but the entire state of Maharashtra, largely owing to the progressive and decisive measures taken by the State Government to galvanize the sector in the post pandemic era. This joint report with CRE Matrix is a testament to the improving homebuying sentiments in MMR with the region witnessing an overall y-o-y growth of 33% in housing sales in January. Homebuyers, at the back of Covid – 19, have also fully comprehended the importance of owning a house and have been registering interest owing to a number of favourable buying factors. We expect this strong tide to continue till March and hope to sustain this momentum beyond March as well.”

 

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Airlines could suffer $75-95 billion cash burn due to tardy recovery: IATA

 The International Air Transport Association (IATA), which represents over 290 global airlines, has revised its estimate of cash burn for airlines from $48 billion projected in November 2020 to $75 billion in 2021 and could touch $95 billion if the recovery from the Coronavirus pandemic ais slower through 2021.

In its November 2020 analysis, IATA had indicated that airlines would turn cash positive in the fourth quarter of 2021, but with several countries grappling with three Coronavirus variants found in UK, South Africa and Brazil, airlines are now not expected to be cash positive until 2022, IATA said in its new analysis presented at a media conference by IATA’s Director general and CEO, Alexandre de Juniac in Geneva.

IATA said 2021 has had a weaker recovery than anticipated after governments tightened travel restrictions in response to the COVID-19 variants, and forward bookings for summer months of July and August are presently 78 per cent lower than pre-COVID levels of February 2019.

“With governments having tightening border restrictions, 2021 is shaping up to be a much tougher year than previously expected. Our best-case scenario sees airlines burning through $75 billion in cash this year. And it could be as bad as $95 billion. More emergency relief from governments will be needed. A functioning airline industry can eventually energize the economic recovery from COVID-19. But that won’t happen if there are massive failures before the crisis ends. If governments are unable to open their borders, we will need them to open their wallets with financial relief to keep airlines viable,” said Alexandre de Juniac, IATA’s Director General and CEO.

De Juniac urged the governments to work with the industry to plan the restart in an orderly and timely manner.  “The UK has set a good example. Earlier this week it laid out a structure for re-opening based on an improvement in the COVID-19 situation. This gives airlines a framework to plan the restart, even if it needs to be adjusted along the way. Other governments should take note as a best practice for working with industry,” he said.

Juniac said efficient digital management of health credentials will be vital for global recovery and the IATA Travel Pass, which airlines are increasingly adopting, could play a crucial role in securing health data of passengers and sharing it with the authorities. A growing list of airlines—including Air New Zealand, Copa Airlines, Etihad Airways, Emirates, Qatar Airways, Malaysia Airlines, RwandAir, and Singapore Airlines—have committed to doing trials with the digital tool.

“Efficient digital management of health credentials is vital to restart. Manual processes will not be able to cope with volumes once the recovery begins. Digital solutions must be secure, work with existing systems, align with global standards and respect data privacy. In developing the IATA Travel Pass these are fully in focus. The IATA Travel App will help to set the bar very high for managing health credentials, protecting against fraud and enabling a convenient travel process,” de Juniac said adding “While there is choice in the market for solutions, there should be no compromise on the fundamentals, or we risk failing systems, disappointed governments and travelers, and a delayed restart,”

He urged the governments to adapt global digital standards in recording tests and vaccinations data. “Speed is critical. Fraudulent COVID-19 test results are already proving to be an issue. And as vaccine programs ramp up governments are using paper processes and differing digital standards to record who has been vaccinated. These are not the conditions needed to support a successful restart at scale when governments open borders,” he said.

Photo credits: www.IATA.org

Indian ultra rich individuals to grow 63 per cent over next five years

 India’s Ultra High Net Worth Individuals (UHNWI) population is likely to grow by 63 per cent over the next five years, the second fastest globally after Indonesia, said the Knight Frank Wealth Report 2021 released by the international property consultants today.

Though the net worth of Indian UHNWIs recorded a -1.6 per cent growth in 2019-2020 compared to 2.4 per cent growth globally, the population of the Indian super rich are likely to clock a growth of 63 per cent in 2020-2025 period on the back of economic recovery from the Coronavirus pandemic, the report said.

The Wealth Report 2021 said out of 521,653 UHNWIs globally, 6,884 were from India. The Ultra High Net Worth Individuals are identified as those with more than USD 30 million net worth. The global population is expected to growth by 27 per cent to 663,483 by 2025, while the Indian population is expected to increase 11,198 by 2025

The report, which gathered data from a survey of wealth managers, said the Indian billionaire count is expected to increase from 113 in 2020 to 162 by 2025. Mumbai (920), Delhi (375) and Bengaluru (238) have a high concentration of UHNWIs.  

The report said 91 per cent of Indian UHNWIs surveyed expected their wealth to increase in 2021 compared to 71 per cent globally. While 1 out of 10 Indian UHNWIs said they purchased a property in 2020, 1 out of 5 say they will buy a new home in 2021.

BREAK-UP OF THE WEALTHY POPULATION IN INDIA:

 

India	UHNWI	Billionaire
2020	6,884	113
2025	11,198	162

Source: Knight Frank Research

Shishir Baijal, Chairman & Managing Director, Knight Frank India said “With the economic operability reaching high levels of its efficiency post the pandemic, India will be striding to make an entry into the US$ 5-trillion club in the next few years. India is expected to further strengthen economically and gain a formidable position as an Asian superpower paving an ecosystem for the rise of new sunrise sectors. The new economic opportunities will help bring lucrative wealth creation assets which will add new wealthy individuals in the country.”

Liam Bailey, global head of research at Knight Frank said, “Asia is the key wealth story. The US is, and will remain, the world’s dominant wealth hub over our forecast period, but Asia will see the fastest growth in UHNWIs over the next five years, 39% compared to the 27% global average. By 2025, Asia will host 24% of all UHNWIs, up from 17% a decade earlier. The region is already home to more billionaires than any other (36% of the global total). China is the key to this phenomenon with 246% forecast growth in UHNWI residents in the decade to 2025.”

 

Mumbai bars get relief as BMC withdraws circular on liquor sales

 Restaurants and bars in Mumbai have got relief after the Brihanmumbai Municipal Corporation (BMC) on Saturday withdrew its notification restricting liquor sales in restaurants to 11.30 pm.

 The notification was issued on Friday evening sending restaurants and bars into a tizzy. While some restaurant owners did not received the official notification, others said complained to their association that they received the notification on whatsapp and were unsure of its legitimacy. Based on information received from its members, the Hotel and Restaurant Association Western India (HRAWI) then sought immediate clarification from the BMC and requested its withdrawal.

 

“We are glad that the BMC understood the kind of disorder such last minute notifications can cause to the restaurant industry and withdrew last evening’s notification restricting sale of liquor post 11:30 pm. We thank the Commissioner of the MCGM and the Principal Secretary Excise for expeditiously issuing a fresh notification withdrawing the restriction. The Hospitality industry has been struggling to stay afloat since the lockdown was implemented by the government. The earlier notification would have just compounded to the industry’s woes, but by withdrawing it swiftly, the government has instilled our faith back in it,” said Sherry Bhatia, President, HRAWI. 

 

Restaurant owners also questioned the logic of ban on liquor sales post 11.30 pm

 

 “How is that going to help control Corona numbers? Are we saying that Coronavirus gets activated between 11:30 pm to 1:30 am? The earlier circular was issued on a Friday evening. This would’ve effectively killed our weekend business. As it is, we are emerging from an unprecedented crisis. Weekday business is almost non-existent. Weekends are the only time we do any kind of business. Weekend business just helps us reduce our losses. To restrict operations at a time like this would be equivalent to killing us. Fortunately, the decision has been reversed and we are thankful to the government, and the BMC for it,” said a restaurateur who wished to remain anonymous.

Gurbaxish Singh Kohli, HRAWI spokesperson & Vice President, Federation of Hotel and Restaurant Association of India (FHRAI) said the notification issued at a short notice had caused chaos and there was little clarity if it was effective immediately or Friday night. He said notifications on whatsapp will open scope for malicious and fake notices and the government should stick to proper channels and grant adequate time for compliance. 

“We thank the BMC and Excise departments for understanding our predicament and for immediately acting on it and taking back an order which would’ve hurt an already ailing industry even further,” Kohli said. 

The restaurants and hotel industry had earlier expressed their anguish at the union budget 2020-21 not providing any relief to the industry trying to recover from the Corona lockdowns in a scenario where demand has been hit majorly. The budget speech apparently made no reference to the restaurants and tourism industry. The Federation of Hotel and Restaurant Association of India had written to Finance Minister Nirmala Sitharaman demanding the lowering of the present threshold from Rs 200 crore to Rs 25 crore per hotel for classification as infrastructure for hospitality projects. Lowering of the threshold would enable hotels to avail term loans at lower interest rates and have a longer repayment period.

RBI keeps repo rate unchanged in post-budget monetary policy

In its first monetary policy committee meeting after this week’s union budget, the Reserve Bank of India on Friday decided to keep the repo rate as well as reverse repo rate under the liquidity adjustment facility (LAF) unchanged at 4 per cent,

Repo rate is the rate at which the RBI lends funds to commercial banks while reverse repo rate is the rate at which the central bank borrows funds from commercial banks.

                              Courtesy: RBI

Some reactions by real estate sector leaders:

Dr Niranjan Hiranandani, National President, National Real Estate Development Council (NAREDCO) and MD, Hiranandani Group

“Under the given market scenario and circumstance , the RBI’s direction on unchanged repo rate is very much on the anticipated lines, though a rate cut would have been better to combat the negativity of pandemic-led economic crisis across the industry. As the economy is gradually opening up and getting back on track to restore the lost momentum, the regulator has indeed brought innovative liquidity injection measures to maintain the policy stability and ensured that additional liquidity is provisional. It is extremely important for the regulator to balance its borrowings from the market so that it doesn’t jeopardize the financial stability and disrupts other market players.

The new policy’s paramount objective of economic revival were addressed by announcing an innovative measures like enhancing liquidity by allowing NBFC to tap TLTRO on tap scheme, allowing additional credit for small MSME borrower’s up to Rs 25 lakh, exemption to FPI investment in defaulted corporate bonds to boost further investment in recaptured economic revival and firming up consumer protection.  The observation that sales and new launches of residential units in major metropolitan cities reflect a renewed confidence in the real estate sector’ reinforces the need for further positive booster dose to strengthen its core revival that enacts a multiplier effect on 270 allied industries.” 

Deepak Goradia, president, CREDAI MCHI

While the RBI's decision to maintain the status quo on repo rates was expected and understandable, the move to provide liquidity to NBFCs through TLTRO will provide additional access to housing finance for developers, which is bound to provide them with added stability and much needed liquidity. We hope this will enable for effective last mile implementation which will ensure a more streamlined financial eco-system

Anuj Puri, Chairman - ANAROCK Property Consultants

As expected, the repo rate and the reverse repo rates remained unchanged while maintaining an accommodative stance. With consumer inflation still trending at the upper end of the apex bank’s band, and the policy repo rate also being substantially reduced by 115 basis points since February 2020, RBI kept the rates on hold, with an eye on how the inflation and the economic recovery pans out in the coming months. Advance estimates indicate that the Indian economy may contract as much as 7.7% in FY2020-21 due to the pandemic.

In such a scenario, one would usually expect RBI to cut repo rates in order to boost consumption. 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.  We are certain that rates will be adjusted favourably once the pandemic exigencies ease.

 

Ramesh Nair, real estate industry veteran and former CEO of JLL India

The expectation from the real estate industry was deeper cuts in policy rates.

Given that RBI has not cut rates, they should now try and ensure that the previously announced rate cuts are fully transmitted to end users and developers and also focus on increasing the quantum of overall credit available for the real estate sector.

 

 

Shishir Baijal, Chairman & Managing Director, Knight Frank India

The decision to maintain the REPO and reverse REPO rate by the RBI is in line with expectations. While the recent moderation in headline inflation rate has lent comfort, RBI will be cautious of demand side inflation picking up as economic growth momentum picks up. Measures on enhanced bank funding window for NBFCs will also benefit the stressed sectors including real estate.

With a growth focused budget recently presented by the finance minister, that further supports the government’s aim of nurturing the economy, this status quo will further allow demand creation including for high involvement products like real estate. As most global agencies have touted, India is expected to recover faster from the COVID induced slowdown mostly based on the restoration of the domestic consumption – which has greatly benefitted from the benign interest rate regime and infusion of liquidity.

As seen in the past few months, housing markets in the country have responded well to low home loan interest rate. Given the interlinkages of the housing market with other sectors of the economy, we believe that low interest rate for a sufficiently long period of time will help build a strong and broad-based demand momentum in the Indian real estate market.”

 

Anurag Mathur, CEO, Savills India 

“The first Monetary Policy Committee meeting after the recently announced Union Budget continues to fuel growth prospects by enabling a strong borrowing ecosystem. Although there was no downward revision of benchmark lending rates, the accommodative stance should be helpful for real estate as well as infrastructure, which is one of the key focus areas in this year’s budget. Inflation being under the tolerance limit of 6%, gives the reserve bank, the ammunition of further reduction of rates and all-inclusive growth for all sectors including real estate in the upcoming fiscal year. While the consumer inflation is projected at 5.2% for the last quarter of fiscal 2021, the overall growth prospects are encouraging with a GDP growth expectation of 10.5% for fiscal 2022.”

Dr. Samantak Das, Chief Economist and Head of Research, JLL India

RBIs decision of keeping the repo rates unchanged and maintaining an accommodative stance will provide the much needed support for the nascent recovery of the economy during 2021. The initial green shoots of recovery are already visible and are expected to gain strength in the coming quarters. This decision by the Central Bank is in sync with government’s recent Union Budget which emphasised on augmenting capital expenditure while keeping the fiscal targets at bay in the short term.

The easing of retail inflation to 4.9% in December 2020 and expected benign outlook has provided the elbow room to maintain the policy rates and support a sustained recovery of the economy. RBI’s expectation of GDP growth at 10.5% during FY 2021-22 indicates growth in jobs and incomes.

The status quo on the policy rates is a welcome step for the homebuyers as they can take advantage of the prevailing lowest mortgage rates. Banks and Housing finance companies are expected to increase mortgage lending due to stable interest rates and comfortable liquidity environment. The demand for housing, which has shown initial signs of recovery in the latter part of 2020, is expected to sustain if the favourable interest rates and price incentives by real estate developers are further supported by economic recovery and improved job scenario.

Anshuman Magazine, Head of India, South East Asia, Middle East and Africa, at CBRE

The RBI’s decision of keeping the repo rate unchanged was on expected lines owing to the rise in inflation in recent months. The past couple of months have witnessed a strong uptick in domestic trading activities and therefore RBI maintaining status quo for the fourth time in a row is a positive step towards spurring consumption. The RBI also decided to continue with it’s accommodative stance as long as necessary.

The Central bank also announced certain additional measures to enhance liquidity, deepen the financial markets and ease retail investor participation; all steps undertaken with the end objective of reviving growth and mitigating the impact of COVID-19 on the economy. This in addition to the announcements made in the Union Budget, will boost economic growth. Also, the policy support provided by the government to affordable housing will continue to boost residential uptake and support construction activity in the upcoming months. 

 

Ashok Mohanani, President - NAREDCO Maharashtra

"The economic growth needs to be supported through the monetary policy and this is the foremost reason that the RBI has continued its accommodative stance. It has focused on balancing liquidity in the financial system while keeping inflation within its target. The interest rates will continue to be at a record low; however the banks should pass on the benefits to the customers which will boost real estate demand. Like the last quarter, we expect the demand to be robust in the Mumbai MMR region in this quarter. The state government's recent announcement of reduction on premiums for developers along with stamp duty reduction for buyers will have a cascading impact on project sales, which will provide an immediate boost to the ailing sector. In the recently concluded Union Budget too, the Central Government has focused and put a step in the right direction to revive the economy after the repercussion of the Covid-19 impact. It has sustained its thrust on affordable housing which will further help achieve the Prime Minister's vision of Housing for All. The real estate sector in India is expected to reach US$ 1 trillion by 2030 and it will contribute 13% to the country's GDP by 2025. The Government should keep a continuous check in the form of reforms that will give a fillip to the real estate sector and will indirectly help revive the economy."

 

Rohit Poddar, MD, Poddar Housing and Development Ltd and Joint Secretary, NAREDCO Maharashtra

“RBI has maintained its accommodative stance not only for rates but also for taking the liquidity infusion related measures. H2 of 2020 has been one of the best periods for real estate considering the growth that has been achieved, the decision to keep the rates unchanged will further help in continuing the momentum.

The GDP growth is expected at 10.5% which showcases that India is advancing towards a more normalized environment. Despite larger than anticipated deflation in vegetable prices in December, the increase in commodity prices globally is likely to keep the core inflation elevated. The rising commodity prices (like crude oil) globally is likely to influence inflation to move in high trajectory. Incentivizing new MSME loans would help banks in expanding their lending cap for the sector. The policy makers in India are taking decisions which are in the best interest of the country's economic revival.”

Surendra Hiranandani, Chairman and Managing Director, House of Hiranandani

 

“RBI has maintained its accommodative stance not only for rates but also for taking the liquidity infusion related measures. H2 of 2020 has been one of the best periods for real estate considering the growth that has been achieved, the decision to keep the rates unchanged will further help in continuing the momentum.

The GDP growth is expected at 10.5% which showcases that India is advancing towards a more normalized environment. Despite larger than anticipated deflation in vegetable prices in December, the increase in commodity prices globally is likely to keep the core inflation elevated. The rising commodity prices (like crude oil) globally are likely to influence inflation to move in high trajectory. Incentivizing new MSME loans would help banks in expanding their lending cap for the sector. The policy makers in India are taking decisions which are in the best interest of the country's economic revival.”

 

Sarojini Ahuja, VP, Sales, Marketing & CRM, Transcon Developers

 

The RBI Governor’s announcement to hold the key interest rates was much anticipated. After the Government's growth focused budget, the status quo by RBI will create demand for the real estate sector further strengthening the economy. The stamp duty cut announced by the State Government has already given a much needed push to the real estate sector especially the luxury housing segment. We expect the demand to sustain in this quarter as well as these is still some time left to avail the stamp duty benefit. RBI's accommodative stance will help mitigate the effects of Covid-19 on businesses and will be a key to the recovery of real estate and the overall economy."

 

Rohit Gera Managing Director, Gera Developments on the latest RBI MPC announcement - 

 

''The real estate sector has finally started showing signs of recovery with sales having picked up on the back of high affordability.
This higher affordability has been created on the back of lower apartment prices, lower interest rates and increasing salaries over the last 5 to 7 years.  

The impact of this higher affordability has now percolated down to people who need homes and we are seeing this need being converted to demand.  Leaving interest rates unchanged provides a greater degree of stability for people to take this important decision.''

 

Manju Yagnik, VCP, Nahar Group and Sr Vice President, NAREDCO Maharashtra

 

“The ongoing accommodative stance by RBI keeping the repo rate unchanged at 4% was the need of the hour to back growth ensuring adequate liquidity in the system whereby keeping the inflation under check. The Indian economy had already witnessed a good bounce back the September-December 2020 quarter which has continued till January 2021. In the recently concluded budget provided the impetus to growth and push to affordable housing. As part of continuing efforts RBI’s decision to keep lending rates unchanged will see home loans at the same lowest interest rates of 6.9 %. This will further boost the sentiment in the real estate market encouraging sales pushing the sector on a complete recovery trajectory. We look forward to ongoing continuous support from the government to ensure complete recovery of the sector.”

Sanjay Dutt, MD & CEO, Tata Realty and Infrastructure Limited

“We welcome the apex bank’s decision to keep the repo rate and reverse repo unchanged at 4% and 3.35% respectively, for the fourth time in a row. Maintaining this accommodative outlook is extremely crucial, especially with the green shoots of recovery being visible now. The government has tried to uplift the sector in the in the past few months by introducing stress funds and stimulus packages that have provided some relief to the sector. We had great expectations from the Union Budget 2021 but it did not address a lot of the issues beyond affordable housing and REITS. We urge the government to consider the multiplier impact of the sector and introduce reforms that propel the growth of the sector, such as allowing FDI in ready to move in inventory to improve liquidity in the market. Granting of industry status, extending the tax benefit from affordable to mid housing, allocating additional capital for distressed funds are some of the other recommendations that are bound to benefit the homebuyers and developers. We appreciate the government’s agile response to boost recovery in the pandemic-stricken period and are truly thankful for their continued support.”

 

Dhruv Agarwala, Group CEO, Housing.com, Makaan.com and Proptiger.com:

The decision of RBI to keep the Repo Rate unchanged along with accommodative stance is understandable at this juncture, although a further cut in the key rates would have given a boost to current demand uptick that we have seen recently. 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."

Piyush Bothra, CFO, Square Yards

The RBI’s India’s decision to maintain the repo rate status quo is a positive decision and will make sure that home loan interest rates will not harden soon in the coming days. The low-interest rates have started impacting the property markets in a positive way. Maintaining low home loan rates was critical for a sustainable recovery in the real estate sector. After the announcement of tax holiday for the primary affordable and rental housing segments in the recent budget, this news will enhance confidence in homebuyers and nudge them towards making good purchase decisions.

 

Prasoon Chauhan, Founder & CEO, BlackOpal

"While the RBI has kept the repo rate unchanged, we feel that real estate will benefit from the position of the Apex bank that the NBFCs will have access to the targeted long-term repo activity (TLTRO). With this decision, we hope the liquidity situation will improve and the NBFCs will extend financial support to the real estate sector. The demand for real estate assets is already strong and we are seeing increased sales in the coming quarter due to multiple factors including low home loan interest rates."

Himanshu Jain, VP - Sales, Marketing & CRM, Satellite Developers Private Limited (SDPL)

 

"On an expected line, the monetary policy committee (MPC) has kept the repo rate unchanged at 4% with an extended accommodative stance that will still continue to serve the markets well. Some strong liquidity measures were announced and are expected to continue which was one of the worries of the market before policy. The earlier announcements by the state government of stamp duty reduction along with reduction on premiums for developers will surely give a boost to the ailing sector and create demand among the homebuyers. The Union Budget 2021-22 also has provided a strong impetus in favour of the Affordable Housing segment. With the interest rates at a record low, the Government will continue taking affirmative measures as long as it is necessary to revive the economy and mitigate Covid-19 impact."

 

Krish Raveshia, CEO, Azlo Realty

 

“As expected the MPC has kept rates unchanged for the fourth consecutive time after it cut rates in May 2020 and unleashed liquidity in the system to help growth. The accommodative policy stance is also unchanged to act on rates going forward if the need arises. RBI Governor projecting GDP growth over 10% for next year and easing CPI inflation is a big positive.

 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.”

 

 

Kaushal Agarwal, Chairman, The Guardians Real Estate Advisory

 

"After a budget that had limited announcements for real estate, the sector was hoping against hope for a further reduction in the repo rates. The reduction would have helped spurred growth in demand for real estate assets, that has been severely hit as a result of the pandemic and subsequent lockdowns. Currently apart from the reduction in stamp duty charges in some parts of the country, the all time low housing loan rates have given the much required fillip to sales activity in the last quarter. The reduced repo has the potential to boost consumption in the economy and help reduce dependence on government spending."

 

 

Nish Bhatt, Founder & CEO of investment consulting firm Millwood Kane International

 

“MPC keeping key rates unchanged for the fourth consecutive time was on expected lines. The central bank keeping the policy stance accommodative indicates its intention to act on rates if the need arises. After the FM, RBI Governor has projected above 10% GDP growth for next year. CPI inflation trajectory by RBI indicates supply situation issues normalizing.

 

A gradual two-step CRR normalization is a step in the right direction. RBI allowing resident individuals to make remittances to IFSCs for NRIs will help boost sentiment and inflows under LRS.”

 

Ravindra Sudhalkar, CEO at Reliance Home Finance 

"The RBI’s stance to retain the repo and reverse repo rates at 4% and 3.35%, respectively and decision to maintain the accommodative stance for “as long as required” will provide comfort to the markets. Passing on the benefit of on-Tap TLTRO to NBFCs will allow stressed sectors to borrow more, including the real estate and housing finance. The revolutionary announcements on retail investors to provide direct access to G-Sec market and allowing residents to make direct remittances to IFCS for NRIs, along with  the plans of integrated ombudsman scheme, indications of normalcy returning in growth and the CRR normalisation roadmap, are among other important measures announced today that will encourage investments in the coming months.”

Ram Raheja - Director, S Raheja Realty 

“In line with expectations, the RBI has kept the repo rate unchanged at 4%, while continuing the basic accommodative stance of the policy in response to the objective of revival of growth. It’s a wise step taken to ensure 2021 to be a better year and to be a setting tone for the new economic era. The home loan rates will continue to be at a multi-year row, hence aiding homebuyers. The MSF and bank rates are unchanged at 4.25% and this will help in restructuring many companies which are still in distress due to the lockdown and boosting the sector at large.”

 

Riaz Maniyar, Co-founder of proptech firm YieldAsset Real Estate Tech Pvt Ltd

RBI has taken the right step in maintaining 'status quo'. There has been substantial reduction in mortgage rates in the last 2 years. This has helped companies in realty sector, especially the disciplined ones, in keeping finance costs low. The government’s ongoing policy support on rates and taxes for the real estate sector indicates that the worst is behind us. The cost of borrowing in India is also at a lifetime low currently. The Indian economy had already witnessed a good bounce back in the recent quarters. The real estate industry in particular, stands to benefit due to several measures taken by the government so far. With real estate demand gradually returning, reduced repo rates would have given an added boost to the market.

 

Lincoln Bennet Rodrigues, Founder and Chairman, Bennet & Bernard Group

 

The status quo is a positive sign for the sector which has been witnessing signs of revival in the past quarter. As the economy is recuperating at a quicker pace than anticipated is a very good sign. To add on, the decision to keep the repo rate unchanged will ensure that home loan interest rates will not harden anytime soon and will continue to remain at attractive rates. This should augur well for home buying sentiment. Going further, the real estate sector still requires further relaxation in policy rates and a cut in interest rates as these measures will reduce the overall cost of buying a property, which will be a direct stimulus for homebuyers. It is quite clear that increasing interest rates would impact overall demand at a time when the government is keen to boost consumption. We are upbeat as consumer sentiment is high, especially after they witnessed the brittle nature of other investment vehicles compared to real estate. We also hope that the government looks into specific measures to enhance ease of doing business for the developers and boost residential uptake in the upcoming months.