Real estate developers and property consultants on Wednesday hailed Reserve Bank of India's decision to not raise the key policy rates, saying that the bold move by the apex bank would infuse positive sentiments in the property market.
RBI on Wednesday surprised the markets by leaving key policy rates unchanged, notwithstanding persistent high inflationary pressure.
Developers hoped that RBI would soon be able to cut policy rates as inflation is expected to ease.
Commenting on the policy, DLF Group Executive Director Rajeev Talwar said: "It's a welcome step. This is the first sign of recovery.
“If government can release food stocks to contain food-based inflation then possibly in coming time RBI may be able to take more steps for recovery of the economy.
"RBI governor has taken a bold step by keeping the rates flat," he told PTI.
Jones Lang LaSalle India Chairman and Country Head, Anuj Puri, termed RBI's decision as good news for the realty sector at the end of the year.
"It is positive for the real estate sector as there was anticipation of increase in the interest rates, which would have been damaging for the sentiments of buyers," Puri added.
Parsvnath Developers Chairman Pradeep Jain said the RBI has ‘acted wisely’ by keeping the key rates unchanged.
"Though there was pressure to raise the rates because of the recent rise in WPI inflation, still the apex bank managed to handle it and held the rates at 7.75 per cent.
“This will give a positive signal in the market."
Jain said he expected RBI to cut the key rates if inflation number comes down.
CREDAI-NCR President Anil Sharma said the RBI has ‘sweetly surprised’ both the experts and industry players with its bold decision.
"We, at CREDAI-NCR, could not have asked for more given the high retail inflation of more than 11 per cent.
“The bold move by the RBI has infused positive sentiments in not only real estate sector but also other sectors of economy," Sharma, who is CMD of Amrapali Group, said.
The consistent efforts of the RBI have already stabilised rupee against dollar, besides providing short term liquidity support to push growth simultaneously, he added.
"Experts are already expecting inflation to ease following arrival of winter crop in the wake of normal monsoon.
“Though the real estate developers' community will have to wait little longer to see interest rates dipping, but given the right intentions of the RBI, we are confident of flawless run of growth thereafter," Sharma said.
SARE Homes Executive Director David Walker welcomed the RBI's step and hoped that the incoming data in the next months would support a moderation in the rate of inflation which could then lead to lower interest rates.
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