Real estate sector welcome continuation of existing policy rates
Mumbai, Oct 06 The real estate sector has welcomed continuation of existing policy rates through the ongoing year.
The economy is looking robust with high investments across businesses in recent times. A recovery in property prices and rise in yields has made investment in residential properties attractive yet again and has been responsible for continued demand in the sector. The long-term benefits of owning a home have led to sustainable growth in the segment.
Hence, the real estate sector has welcomed continuation of existing policy rates through 2023 and undoubtedly, a further reduction in interest rates in the near future would be preferred to bolster overall market confidence and make it more enticing for home buyers.
Ramani Sastri, Chairman and MD, Sterling Developers, says, “With the ongoing festive season, we are already witnessing a surge in inquiries and we are expecting around 20 per cent growth compared to last year’s festive season. This naturally offers a context for consumers to go in for their dream homes as the overall climate is geared towards sustained demand and the fact that home buyer confidence is at an all-time high.”
The market continues to experience end user-driven demand and we are already witnessing a trend of more serious buyers closing sales. India’s real estate market is one of the most dynamic and fastest-growing in the world. Real estate investments hence remain one of the most desired investments due to their strong base and reliability factor.
According to him, “We will continue to see a multi-fold growth in real estate investments since the real estate market is less volatile than other investment markets and delivers higher returns. As long as the macro fundamentals are stable, demand for real estate will continue to grow. The Indian real estate market is booming and being a part of its growth can extend favourable returns in the future.”
The luxury housing segment is witnessing an unprecedented boom with the growing economy. This heightened demand is underpinned by an overwhelming level of interest from high-net-worth individuals (HNIs), non-resident Indians (NRIs), aspirational middle-class and millennials accompanied by a desire for better living, subsequently driving up prices in this segment. However, a reduction in the key rates going forward would be widely celebrated as low interest rates have been a crucial factor in the revival of overall real estate demand and improvement in the liquidity situation which is vital for the sector.
Lincoln Bennet Rodrigues, Chairman & Founder, The Bennet and Bernard Company, known for luxury themed homes in Goa says, “We welcome RBI’s decision to maintain status quo as it helps in holding the interest rates and sustaining the growth momentum in the real estate sector. The perception of lifestyle has changed which is driving the demand for premium properties and we believe the positive sentiment will continue in the luxury segment.”
Overall, we believe that this momentum is projected to persist not only throughout the remainder of this year but also well into 2024, he added.
