Lincoln Bennet Rodrigues, Founder and Chairman, Bennet & Bernard Group
While the real estate industry always aspires for reduced interest rates, the decision of RBI to keep the repo rate unchanged is understandable at this juncture and will make sure that home loans will continue to remain at attractive rates and this should augur well for home buying sentiment. Residential demand is reviving in the pandemic context and this needs to be fostered. A further cut in the key rates would have given a boost to current demand uptick that we have seen recently. Our country is recovering fast from the Covid-induced slowdown due to revival in domestic consumption – which has greatly benefitted from the benign interest rate regime, infusion of liquidity as well as stable returns of real estate investment compared to other investment instruments. The International Monetary Fund (IMF) has projected an impressive 12.5 percent growth rate for India in 2021, stronger than that of China which augers well for real estate sector too. As the economy is gradually opening up and getting back on track to restore the lost momentum, we feel that special attention should be paid to the real estate sector which contributes significantly to the country’s economic growth.