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China temporarily suspends visas for foreigners to prevent incoming cases of COVID-19
Quotes on RBI Rate Cut by Real Estate Developers
Published on March 27, 2020
Dhruv Agarwala, Group CEO, Housing.com, Makaan.com and Proptiger.com
We welcome the RBI’s move to cut the repo rates and take steps to provide more liquidity in the system. This will go a long way in reducing the massive pain being felt in all parts of the economy and especially in the rate sensitive real estate sector. By reducing repo rates by 75 basis points, reducing reverse repo by 90 bps, infusing funds to the tune of 3.74 lakh crore in the banking system via various measures and by announcing a moratorium of 3-months on all term loans including home loans the RBI has shown its decisive intent to mitigate what could have been a severe economic fallout of the corona virus pandemic.
Amit Modi, Director ABA Corp and President (Elect), CREDAI Western UP
RBI’s fresh announcements will further provide relief to several Indians who have been forced to sit home in the wake of the novel coronavirus outbreak, but first all the banks need to make sure that there is a quick transmission of the announced rate cuts to the end consumer, else the whole effort will be futile.
We also wholeheartedly welcome the 3 month moratorium on EMIs and this should be applicable right away to bring relief to millions of homebuyers across the nation.
We feel that RBI and the Government should proactively make sure that these benefits reach the end consumer, especially now that there is a 100 basis points cut in the cash reserve ratio to ensure sufficient liquidity in the system.
Pradeep Aggarwal, Founder & Chairman, Signature Global and Chairman, National Council on Affordable Housing, ASSOCHAM
RBI has played its part and it is now upto commercial banks to pass on the benefits to the end users as well as corporates. The transmission track record of banks is not great and thus, it would be interesting to see how the apex bank nudges the bank to follow suit.
Manoj Gaur, MD, Gaurs Group and Chairman, Affordable Housing Committee, CREDAI (National)
With of repo by 75 bps to 4.4% and reverse repo by 90 bps to 4% along with liquidity infusion to the tune of Rs 3.74 lakh crore, the home loan rates to should fall by 90-110 basis point. For the sake of Indian economy, RBI must ensure proper transmission.
Sagar Saxena, Project Head, Spectrum Metro
All of it looks good and we welcome the steps taken by the RBI Governor. The rate cuts announced are sweeping and in fact historical. RBI has been doing its bit every now and then, which we have seen last year also when it brought down the repo rate five times, but benefits hardly get passed on to the buyers. Banks have to understand the role real estate plays in the overall development of economy through employment generation along with its allied sectors. We hope that the situation will change and the sector will get its due.
Ashish Bhutani, CEO, Bhutani Infra
Last time such massive cut in policy rates and liquidity infusion was announced during the financial crisis of 2008. This indicates the kind of disruption that Covid has brought. In this context, all measure that RBI has announced was warranted and we welcome the RBI move. From reduction of rates to infusion of liquidity to moratorium on loans, will help both individuals & organization to the cope up with current situation.
Vikas Garg, Deputy Managing Director, MRG World
After cutting policy rates five times in the past one year, the RBI had been on a pause since December in view of high inflation. Banks should consider real estate as the priority sector as this sector along with its allied sectors/industries contributes handsomely to the GDP. Homebuyers should also get relief from the banks in the form of reduced EMIs which will bring in a situation prevalent in 2003-04 when rates were around 7 per cent. If buyers will get such a rate then the real estate sector might see another boom, which will be good for the overall health of the economy.
Amit Raheja, CMD, Wealth Clinic
If benefits are passed on to the home loan seekers we expect the market to take the pre-2007 trajectory. EMI burden has been making many people to defer buying homes and wait for the favorable conditions. After the current announcement by RBI, if banks bring down the EMIs then we expect a new windfall of buyers. The reduced EMIs will surely make the buyers to instantly look for the available options for their homes. We are expecting an increased number of inquiries in a few days and a good conversion rate.
Mohit Goel, CEO, Omaxe Ltd.
While the RBI’s move involving cut in repo, reverse repo, CRR and SLR and thereby the infusion of abundant liquidity are need of the hour, its now time for banks to rise to the occasion and pass on the benefits at the earliest before the negative triggers come into play.
The moratorium on all loans and deferment of interest on all loans including working capital, home and car loan EMIs are appreciable moves, we expect far reaching benefits for all sectors in the times to come as RBI continues to monitor the situation closely.
Deepak Kapoor, Director, Gulshan Homz
The massive rate cut is a big relief for entire economy amid lockdown due to Covid -19 in the country. The Apex bank’s move is meant to boost consumer sentiments once commercial banks transmit the benefits to actual consumers. This includes home seekers as well as developers. When home loan interest rates are lower for buyers, they are encouraged further to invest in a home. Apart from this, a moratorium of three months on all outstanding loans including home loans is a major step in order to lighten the burden for all EMI payers to overcome in ongoing circumstances.
Vijay Verma, CEO, Sunworld Group
After the announcement made by the RBI Governor, it is up to the individual banks to pass on the benefit. It should not happen like earlier repo rate cut announcement where nothing was given to the home loan seekers. If we want to see the growth of real estate sector, which contributes significantly towards the GDP, then EMIs have to be reduced and latest announcement has definitely given that opportunity to individual banks. Another important aspect is the increase in liquidity as reverse repo rate has been cut by 90 basis points. Banks should use part of this money to infuse money in real estate sector and consider it as RBI Governor has stressed upon the need to keep the credit flowing to the stressed areas of the economy.
Parveen Aggarwal, Founder & Chairman, Signature Sattva
Reduction in repo rate, reverse repo and CRR along with other measures of infusing liquidity in the system was extremely important and RBI has pressed the right button. Equally important is the moratorium of 3-month, which RBI has provided on all term loans including home loans. This will help individuals immensely.
Ankit Kansal, Founder & Managing Director 360 Realtors
The decision by RBI to slash the repo rate by 75 basis points will surely revive demand in Real Estate & contain the downside of risk of COVID-19 induced economic slowdown to a great extent. Many home buyers who could not buy during the current lockdown are expected to return, once the crisis will abate. In such times, increased liquidity will help further pushing ahead the demand.
Prateek Mittal, Executive Director, Sushma Group
Amidst the coronavirus outbreak, the government as well as various authorities are doing their bit. In this quest, to jumpstart the economy, RBI’s decision to reduce repo rate cut by 75 basis point, the biggest repo rate cut till date, is a commendable move. With this the home loan rates will fall tremendously that will help to keep the realty sector afloat at this time of crisis. With such lucrative rates, we can expect a significant rise in number of new buyers.
The RBI also announce a 3 month deferment to the repayment of term loans. This announcement by RBI will further provide relief to several Individuals and corporates who have been forced to sit home in the wake of the novel coronavirus outbreak.
