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Business

The RBI has once again opted to keep the repo rate unchanged

The outcomes of the Reserve Bank of India’s (RBI) meeting have been announced by Governor Shaktikanta Das, confirming that there have been no changes to the repo rate, which remains steady at 6.5 percent. As a result, there will be no increase in loan EMIs. The real estate sector has welcomed this decision favorably.

Manoj Gaur, President CREDAI NCR and CMD Gaurs Group

Excellent decision by RBI. For the last one year, RBI has kept the repo rate unchanged at 6.5%. The real estate sector continues to exhibit a steady demand, the commercial segment is doing exceptionally well, and the country’s economy is growing from strength to strength. The residential segment will maintain the trajectory it took last year. I am sure that the sector will continue to show buoyancy as in the past quarters across the country.

Amit Modi, Director County Group

Once again, RBI has not made any changes in the repo rate, which is undeniably beneficial for the real estate sector. This will particularly uplift the morale of home buyers and investors. It clearly indicates that the country’s economy is consistently performing well.

Mohit Goel, Managing Director Omaxe Group

The RBI’s decision to maintain the repo rate at 6.5% aligns with its consistent approach and is welcomed. With a robust economy, high GDP growth, buoyant Sensex, stable crude oil prices, and easing inflation, the real estate sector is poised to sustain its strong performance in 2024. RBI’s decision aligns well with the country’s economic performance and signals stability, crucial for the ongoing realty sector’s robust growth.

Ashwinder R. Singh, Co-Chairman, CII, NR Committee for Real Estate, CEO Residential at Bhartiya Urban

With policy rates unchanged @6.50% and the RBI MPC’s commitment towards stable lending rates bodes well for India’s real estate sector, particularly in terms of home sales and home loans. With steady rates, prospective homebuyers can approach the market with confidence, driving increased demand for residential properties and facilitating easier access to home financing. This positive environment fosters growth and opportunity within the housing market, benefitting both buyers and developers alike.”

Nayan Raheja, Raheja Developers

The realty sector welcomes the RBI’s decision to hold the repo rate. This move will foster stability and bolster confidence among stakeholders, including home buyers and investors. However, the repo rate at 6.5% remains at a 4-year high, and a rollback would have boosted the affordable housing segment.

Pradeep Aggarwal, Founder & Chairman, Signature Global (India) Ltd

As expected, the RBI kept rates on hold. The prolonged pause, for the sixth time, since February 2023, is aimed at keeping inflation in check without hurting the economic growth momentum. With the reduction in policy rates would have been the best scenario for interest-sensitive sectors like the real estate sector, policy continuity is the next best outcome for both borrowers and developers alike. The decision allows homebuyers to make informed choices, which is expected to result in enhanced demand across all housing segments in line with the country’s overall economic progress.

Kushagr Ansal, Director Ansal Housing

The RBI’s decision to uphold the current repo rate is greeted with approval. While the real estate sector hoped for a slight reduction, this decision underscores stability. It is poised to enhance confidence among developers and homebuyers, providing clearer long-term financial commitments and EMIs.

Rajjath Goel, Managing Director of MRG Group, comments on

The RBI’s decision to sustain the repo rate at 6.5% for one more consecutive time, anticipating a positive surge in the housing market. Despite the rising housing costs, the unchanged home loan rates offer a semblance of relief to homebuyers. Consequently, both buyers and developers stand to benefit from stable interest rates, fostering increased consumer confidence and investment in the sector. The RBI’s decision is expected to bolster new launches and the expansion of projects in emerging hotspots.

Ankush Kaul, chief business officer – Ambience Group

“A commendable decision by RBI. It has been one year since the RBI decided to hit the pause button and keep the repo rate at 6.5%. It is expected to stimulate growth and boost the realty sector, providing a fillip to the premium housing and commercial segments. This decision presents the picture of the country’s resilient economy.

Sanchit Bhutani, MD of Group 108

This move is seen as a positive development, anticipated to stimulate growth in the real estate sector. The decision is expected to provide relief to the middle-income group, as they won’t have to bear the burden of higher interest rates on home loans. Additionally, there is a prediction that both commercial and residential property sales will experience an upswing. The Reserve Bank of India’s choice to maintain the repo rate reflects growing confidence in the sector.”

Rajesh K Saraf, Axiom Landbase, Managing Director, Axiom Landbase

The RBI’s decision to maintain the repo rate at 6.5% brings positive implications for the Indian housing and home loan sector. With interest rates remaining steady, prospective homebuyers can benefit from a favorable lending environment. This consistent stance instills confidence in the market’s reliability.

Pawan Sharma, Managing Director Trisol Red, comments that

The decision not to increase the repo rate is once again good news for the real estate sector. The fact that the repo rate has not increased in the past year has proven beneficial for the real estate sector in every aspect. This is undoubtedly excellent relief news for both home buyers and investors. Indeed, this will further benefit the market.

Sanjay Sharma, the Director of SKA Group

He emphasized that any hike in interest rates could adversely affect the real estate sector. The decision not to increase interest rates is expected to boost investor confidence and contribute to a rise in demand for residential properties.

Vikas Bhasin, Chairman & Managing Director, Saya Group

The RBI’s decision to keep the repo rate steady provides optimism to the real estate sector. This move underscores both macro and microeconomic stability, fueling year-end housing sales and bolstering the sector’s growth trajectory for 2024. It showcases the resilience of the country’s economy, poised to spur growth, particularly in premium housing and commercial segments.

Ajendra Singh, Vice-President (Sales & Marketing) Spectrum Metro

Not making changes in the repo rate signifies that the Indian Economy is strong. Compared to the Global Economy, India’s economic situation is better. The steps taken by the RBI are beneficial for the commercial and residential real estate sector in every aspect. We hope that this entire year will prove to be suitable for investors.

Business

Signature Global launches affordable premium green homes, The Millennia IV Gurugram

Jan 5, 2022 by Gouri Achary 0 Comments #ASSOCHAM, #Pradeep Aggarwal, #premium green homes, #Signature Global, #The Millennia IV Gurugram

The Millennia IV Gurugram

Signature Global, a premium name in real estate, has launched Signature Global The Millennia IV in Sector 37 D, Gurugram. The new offering is the 28th project of Signature Global and follows the success of Millennia I, II and III. The project under the Haryana government’s Affordable Housing Policy spread over 5,89 acres offers 814 2BHK units, with sizes of 580.53 sq ft, 588.93 sq ft, 585.60 sq ft and 597.77 sq ft. These premium lifestyle homes with green features and a large number of amenities come at affordable rates of Rs 25-26 lakh.

The Millennia IV has the distinction of being an IGBC Gold-rated project having advanced global green building certification that provides benefits of the value of green sustainable buildings to customers in terms of water and energy efficiency, green environs and wellness. Common areas lighting with solar panels, LED lights, besides the use of steel/aluminium powder coated UPVC doors and windows and high-performance glass with light transmission ensure better cooling, in turn saving energy.

“As an affordable housing project that adheres to the Affordable Housing Policy’s guidelines, the project would be a gift for the middle class. It would provide premium housing apartments of predetermined size and rates at a set time, with all of the guidelines designed with the buyer’s benefits in mind,” said Mr Pradeep Aggarwal, Founder & Chairman, Signature Global, and Chairman, National Council on Affordable Housing, ASSOCHAM.

There are sustainable water management features and low flow fixtures for water-saving. Signature Global projects with ISO 9000, 14001 and 45001 certifications assure safety and wellness, cost reduction and quality of processes and products. The eco-friendly construction ensures economy and strength compared to conventional brick construction. Moreover, it controls seepage and leakage. Weather-resistant paints ensure that extreme weather does not affect exterior walls. With this excellent green affordable housing, Signature Global has won the coveted Green Champion Award of IGBC for promoting green affordable housing. The company also enjoys the distinction of being the first affordable housing company in the NCR to get the highest rated green certification – EDGE.

The Millennia IV Gurugram

Like all other Signature Global projects, The Millennia IV is located right on Dwarka Expressway and is well-connected from NH8 and Hero Honda Chowk also enjoys the USP of excellent location and connectivity. With about 20 km drive from IGIA, it has a proximity to Gurugram Railway Station and the proposed Metro station. There is also faster connectivity to IMT Manesar and Multi-Utility Corridor.

Besides prime location, the other USP of Signature Global projects are on-time or even before time delivery. The use of advanced AFW construction technology not only speeds up construction but also ensures high quality. Signature Global has successfully delivered 7 projects including five projects in Gurgaon and one each in Sohna and Karnal. Gurugram projects include Signature Global Solera, Synera, And our Heights, Grand IVAand Orchard Avenue, The other two projects are- Signature Global Mall, Vaishali, Ghaziabad and Sunrise Floors in Karnal.

Signature Global The Millennia IV boasts of excellent social infrastructure. It is surrounded by 450 acres of the township and several world-class premium residential projects, five-star hotels and fine dining restaurants. Prominent hospitals, schools, colleges, shopping malls and retail complexes are also in close proximity. There are a large number of unmatched amenities spelling premium lifestyle. These include driveway and parking, jogging track, pathway, kids/toddlers play area, open-air gym, work out area, reflexology with senior citizens area, yoga and meditation lawn, reading corner, pets park, central water body and sitting area, cricket net, community hall and events area.

The project details are available on the official website of DTCP and prospective homebuyers can easily check it and apply.

Business

Realtors welcome continuation of low home loan interest rates in latest RBI MPC

Dec 9, 2021 by Gouri Achary 0 Comments #Ar Nayan Raheja, #Dhiraj Bora, #low home loan interest rates, #Pradeep Aggarwal, #RBI MPC, #Realtors, #Uddhav Poddar

The real estate sector did not receive anything significant in the recent RBI MPC, but realtors are taking comfort in the RBI’s decision to maintain the status quo in the repo rate. According to realtors, “The apex bank is clearly confident about economic growth in the recent MPC. As the economy recovers from the pandemic, the central bank has pushed for a steady policy environment. In FY22 and FY23, a progressive unwinding of liquidity, stable energy costs, and the government’s handling of the pandemic will be critical to growth.”

Thanking the apex bank for continuing with the accommodative stance, Pradeep Aggarwal, Founder & Chairman, Signature Global Group, Chairman, ASSOCHAM, National Council on Real Estate, Housing and Urban Development, said, “The low home loan interest rate has been a crucial demand by real estate, and the RBI has helped the sector by maintaining the status quo. We would suggest that the buyers take advantage of the current situation because later prices might go upwards under the pressure of increased costs.”

The RBI maintained a low repo rate that would be helpful for the real estate sector. “We have to understand that real estate does not work alone but depends on the growth of all other sectors/industries. The accommodative stance that RBI has taken will boost the economic environment and lead to a conducive situation for the real estate sector too. Looking at the increased demand for real estate, we urge the state governments to reduce stamp duty to be a gift to the homebuyers,” said Ar Nayan Raheja of Raheja Developers.

The value of the real estate as an asset will continue for a long, and strengthen with time as the industry begins to recuperate; low home loan interest rates have worked really well for the sector. Additionally, more push is needed with support from govt. to bring back the influx of fence-sitters in the market. Navdeep Sardana, Chairman & Managing Director, Elite Landbase, said, “Since May 2020, the RBI has kept the repo rate unchanged, which is understandable. A tightened fiscal policy is counterintuitive in a time when the emphasis is on growth and spending. However, it is also a time, when a shift is needed from a number-centric fiscal approach to a more holistic and sector-specific policy roadmap. In real estate, there is a pressing need for tailormade subsidies and discounts to help the sector recover fast. We have seen how stamp duty reduction has boosted housing sales in the past and similar measures can be icing on the cake. Likewise, credit subsidies to developers and reviewing of GST on raw materials can also be highly helpful and optimize the overall housing supply chain”.

Realtors feel that though real estate needs several measures, it will be good to implement the announcements made in the last few months to achieve progress. LN Jha, Director, SKA Group, said, “As the inflation is pegged at 5% (within the safe zone of 2-6%), RBI’s decision to keep the repo rate unchanged at 4% was very much on the expected lines. Simultaneously, the sustenance of accommodative stance also bodes well for the emergence of a strong economy, out of the sustained revival path. With new variants being found, these are crucial times that require a high degree of monetary and fiscal support and RBI is dealing rightly with it. This decision will have a long-lasting impact in ensuring consistent growth to the entire real estate sector and its ancillaries.”

Uddhav Poddar, MD, Bhumika Group, said, “While the MPC expectedly maintained status quo on the policy rates, we would have hoped for a reduction in rates to uplift the sentiment, especially when customers have started regaining their faith back and have begun treading towards making high-end purchases. Lower EMIs play a critical role in order to rekindle demand and making real estate assets more appealing. RBI has also enhanced the transaction limit to Rs 5 lakh from Rs 2 lakh for UPI payments for RBI’s Retail Direct scheme, which will be giving a significant boost to the particular segment.”

“Though we had hoped for real estate-specific announcements, we recognize that the RBI needs to focus on all sectors to achieve economic development. Maintaining the repo rate in real estate will help a lot in terms of retaining buyer sentiment. While a stable repo rate is appropriate, the necessity for industry-specific measures cannot be neglected,” said, Dhiraj Bora, Head – Marketing & Communication, Paramount Group.

Mr. Pradeep Aggarwal, Founder & Chairman, Signature Global_02

Business World

Gurugram leads in affordable housing

May 5, 2021 by Neel Achary 0 Comments #ASSOCHAM, #Chairman, #Founder & Chairman, #Housing and Urban Development, #National Council on Real Estate, #Pradeep Aggarwal, #Signature Global Group

By Pradeep Aggarwal, Founder & Chairman, Signature Global Group, Chairman, ASSOCHAM, National Council on Real Estate, Housing and Urban Development

With improved demand and supply in the affordable housing market, the real estate sector, which has been going through a rough patch for the past few years, is gaining traction in Delhi-NCR. According to a report by property consultant Anarock, affordable housing — defined as units costing less than Rs 45 lakh — has seen the highest demand since the pandemic hit the nation. In 2020, affordable housing accounted for 40% of demand, up from 31% in Covid-19 — a 9% rise. Nearly 38 percent of the overall affordable housing demand in the country came from Delhi-NCR. Affordable Housing in Gurgaon accounted for 32 percent of total demand in the Delhi-NCR region, led by Greater Noida (24 percent).

Between 2018 and 2020, 79,840 affordable units were introduced in Delhi-NCR. Nearly half of these were in the affordable category. Last year, a total of 18,540 units were available, with affordable housing accounting for 61% of the total. The supply and demand are in harmony. Gurugram has the most affordable housing stock, with 6,590 affordable units out of 11,180 new units launched last year. Between 2018 and 2020, Signature Global, a leader in affordable housing, launched 19 affordable projects. Gurugram has the highest demand, with 32 percent, followed by Greater Noida (24 percent), Noida (18 percent), Delhi (12 percent), Ghaziabad (8 percent), and Faridabad (6 percent).

According to the most recent update to the Affordable Housing Policy, each dwelling unit now has one free parking space. Furthermore, the state government’s increase in the project area cap through this amendment would encourage many reputable real estate players to come forward and create affordable housing, which has long been in demand. An increase in the commercial area of a project, which means more margins for developers coping with low income, is another boon to the sector.

In the last few decades, the economic growth in Gurgaon has supported accelerated urbanization and growth of the migrant population coming to the millennium city offering maximum employment opportunities. Rapid development in on MG Road and Cyber City created a ripple effect and pushed developments to new Gurgaon and the southern parts of Gurugram; this led to the emergence of new areas like Southern Peripheral Road (SPR) and Sohna Road – taking you to the Sohna town. Sohna’s real estate market is led by affordable and mid-segment housing. Emphasis on affordable housing is also pushing further the development of this region where more than 40 percent is under Rs 50 lakh.

Talking of Affordable Housing in Gurgaon, sector 95 is the area that is popular and Signature Global Aspire is a project which opens for application till 18 April 2021. The project offers 2BHK units in 22.45 lakh and offers all major amenities.

Signature Global has two projects in South of Gurugram — Serenas and Signature Global Park, under Haryana Affordable Housing Policy and Deendayal Awaas Yojana respectively. Serena’s has been sold out and SG Park’s first phase is ready for delivery.

Pradeep Aggarwal, Founder & Chairman, Signature Global Group, Chairman, ASSOCHAM, National Council on Real Estate, Housing and Urban Development

Business World

3 BHK floors on Sohna Road is in demand

Apr 13, 2021 by Neel Achary 0 Comments #ASSOCHAM, #Chairman, #Founder & Chairman, #Housing and Urban Development, #National Council on Real Estate, #Pradeep Aggarwal, #Signature Global Group

By Pradeep Aggarwal, Founder & Chairman, Signature Global Group, Chairman, ASSOCHAM, National Council on Real Estate, Housing and Urban Development

The demand for 3 BHK floors has increased in the post Covid-19 situation as people are looking for spacious properties. The realization of the importance of one’s home has dawned on people as they have seen the difficulties faced in problematic situations such as this global pandemic where many tenants faced a hard time dealing with the landlords. Gurugram is seeing maximum sale in this segment; 3 BHK floors in Sohna Gurgaon are getting attention due to the competitive pricing and impeccable locational advantage.

People are specifically looking for gated complexes that have a retail hub, swimming pool, open green areas, kids play area, multipurpose court, skating rink, and seating areas. Another advantage of 3 BHK floors on Sohna Road is that soon-to-come-up Badshahpur elevated road is in the vicinity, Delhi-Mumbai Industrial Corridor and multiplexes around this area will soon be operational. Educational institutions (GD Goenka, Pathways, DPS, KR Mangalam), hotels (The Taj Gateway Resorts, The Westin – Sohna Resort and Spa, Country Inn at a distance of 5 min), hospitals, and malls are close by. Signature Global has Signature Global Park in Sector 36, Sohna, South of Gurugram is situated at a distance of just 20 minutes from Rajeev Chowk, the premium project is being developed under Deen Dayal Jan Awas Yojna. The varied options in the project include Independent Premium Floors, Stilt car parking + 4 Independent Floors of 2 BHK (951.43 sq ft) and 3 BHK (1081.67 sq ft). The project has perfect location as more than six reputed Schools are within a 15 km radius, Sohna Elevated Road (under construction), Shopping Malls with leading brands are 15 km away, hotels in 15 km Radius, 11 Multiplex Screens to be functional soon, Office Complexes and Business Hubs in the neighborhood, adventure park in the vicinity, and lush green environment.

The Group has been showing seriousness towards ‘Housing for All’ target, and is making significant contribution to meet the housing need of people by providing homes that suit their requirement. Till date, the Group has already launched 22094 units under Haryana Affordable Housing Scheme & Deen Dayal Jan Awas Yojna, and have delivered 2983 units to date.

Gurugram has been performing extremely well due to Haryana Government’s constant support. The State Government brought in amendments in Haryana’s Affordable Housing Policy. Haryana has a model policy that is most suitable for the development of this segment. Haryana Cabinet’s decisions to push affordable housing has led to an increase of total limit for grant of Affordable Group Housing Colony in a sector to 30 acres, also extending the Deen Dayal Jan Awas Yojna to Gurugram Development Plan. The biggest advantage in DDJAY floors is that each floor is separately registered and a buyer can avail benefits of CLSS according to his/her eligibility on securing a floor.

Offers galore at PropTiger's 'Right to Home' expo across all top real estate markets of India

Business World

Gurugram realtors calls for rationalizing of circle rates

Apr 13, 2021 by Neel Achary 0 Comments #ASSOCHAM, #Chairman, #Founder & Chairman, #Housing and Urban Development, #National Council on Real Estate, #Pradeep Aggarwal, #Signature Global Group

In a sudden move, the Gurugram administration decided to increase the circle rate by up to 90% at some of the posh localities of the city, at a time when the real estate sector is still recovering from the setback by COVID19. The revived circle rate came into effect on April 8. The city realtors called out to the administrators to look into the matter and roll back the increase as it can have cascading effects on the city’s growing sales, which have been better than the neighbouring cities in NCR.

Sanjeev Arora, Director, 360 Realtors, says, “Instead of increasing the circle rates by 90%, the administration should have stayed only with its decision of November 2020 of imposing additional tax liability where the differential between market price and circle rate is up to 20%. The current decision will dent the real estate market, which is in the revival mode after the COVID situation. In all our dealings with the buyers, we have concluded that they are looking for respite. Right now, the developer community is using all means to help the buyer realize their dream of owning a real estate asset, but the community needs support from the government. The rates in Gurugram are already high, and we hope that the administration realizes it.”

The Gurugram administrations’ decision to increase circle rates cannot be justified when other states are reducing stamp duties. For quite some time, the developer community has been demanding a cut in circle rates to infuse confidence in the market; the circle rates were already very high, and this increase will prove detrimental for the realty sector. Achal Raina, COO, Raheja Developers, says, “We have to look at states that are trying to help the buyers save money in these challenging times. We have examples where states have reduced stamp duty, and Gurugram has gone ahead with an increase in circle rates. We request the administration to deliberate on the ways to help the real estate sector in the city. The demand in the city is high, and we have been witnessing a good number of sales; this will automatically mean good revenue. However, increased circle rates will force the buyers to go into the shell, which will affect the revival.”

The real estate market has been in the revival mode as buyers have been thronging to get hold of a real estate asset. According to JLL Q1 Residential Market Update – Q1 2021 report, the Delhi NCR market has performed much better than all other major cities in terms of new launches, as the region witnessed a jump of 111% in Q1 2021 over Q4 2020. Compared with Q1 2020, NCR added approximately 6,750 units in Q1 2021, a Y-o-Y increase of 9%; out of the total, approximately 52% of the new supply was in the affordable segment, according to ANAROCK’s Q1 2021 data. The number of launches in Gurugram is better, which points to the demand for property in the city.

When Maharashtra reduced the stamp duty, it recorded around 12,000 property registrations in March; the state also decided to maintain a status quo on circle rates. The state government decided in August 2020 to reduce the stamp duty on selling deed documents registered between September 1 and December 31, 2020, by 3%. From January 1 to March 31, 2021, the relaxation proceeded with a 2% reduction; Resultantly, Mumbai saw a surge in property registrations.

Pradeep Aggarwal, Founder & Chairman, Signature Global Group, Chairman, ASSOCHAM, National Council on Real Estate, Housing and Urban Development, says, “This year, the Delhi government has decreased the circle rates. We were expecting that the Haryana government would decrease the circle rates. The move to hike the rates would discourage investors from buying properties. The sector needs support from the government, and buyers are also looking at ease of buying. On its part, the real estate sector has kept the prices subdued for years now despite rising raw material cost; buyers constantly looking for some respite in prices, which is only possible through a reduction in circle rates and stamp duty. We urge the administration to look into the matter and take preventive measure.”

Business World

Inputs on RBI Repo Rate Announcement

Oct 10, 2020 by Gouri Achary 0 Comments #Amit Modi, #Manoj Gaur, #Pradeep Aggarwal, #RBI Repo Rate, #Uddhav Poddar

Dhruv Agarwala, Group CEO, Housing.com, Makaan.com and Proptiger.com, The status quo on repo rate was expected as inflationary pressures made it difficult to cut rates further. Rationalising risk weightage on home loans and linking it to Loan to Value (LTV) ratio will effectively result in higher credit flow to the real estate sector, which is positive news for the sector. Also, the hike in credit limit for retail exposure by a single lending entity from Rs. 5 crores to Rs 7.5 crore is a welcome move that will immensely help both retail as well as small businesses.

Ashish Bhutani, MD & CEO, Bhutani Infra
This decision of the RBI to keep the repo rate unchanged was taken due to the signs of revival that the MPC has observed recently. However, the bank should have taken into consideration the need for liquidity. The apex bank has also talked about improving liquidity in the market, which will have a direct bearing on the real estate too. Like the RBI we too are optimistic about the economic growth. Having said that we were hoping for announcements that can specifically talk about various sectors and how banks are going to help improve the growth. However, we are upbeat as the consumer sentiment is high, especially after they witnessed the brittle nature of other investment vehicles as against real estate.

Ankit Kansal, Founder & MD, 360 Realtors
The recent decision by RBI to keep the repo & reverse repo rate unchanged underpins the accommodative policy by the government alongside reining the inflation rate. This should have an overall positive impact on the recovering Indian Real Estate industry as an accommodative stance should plug-in the liquidity crunch in the market. Likewise, managing inflation will control the cost. At the same time, the RBI has announced a sharp GDP decline of 9.5% for FY 21, which is in line with what has been predicted by most of the major international & domestic rating agencies. Now all eyes would be on how the government plans to combat the economic slowdown and boost demand. A host of steps in the form of capital injection, refinancing of banking institutions, policy impetus, subsidies, and discounts are required to see a faster recovery.

Uddhav Poddar, MD, Bhumika Group & Founding Member, SCAI
“The real estate sector is badly affected due to the pandemic, and it needs support from the banks. One of the biggest issue with some of the realtors is the liquidity issue, and we hope RBI will address it as it has announced to take steps to ease liquidity. One of the announcements that is beneficial for the sector is that the new housing loans to be linked to LTV only. We hope that the buyers will take advantage of the situation and realize their dream of owning a home.”

Amit Modi, Director, ABA Corp & President (Elect) CREDAI Western UP
Even though the apex bank has kept the rates unchanged, but we still believe that there is room for financial institutions to cut down on their lending rates for their customers. During the lockdown, the RBI reduced the repo rate which failed to bring cheer to the market, however now the stagnant rates today might have helped smooth the economy to some extent and the benefits of which are yet to be fully passed on to the customers.

Manoj Gaur, MD, Gaurs Group and Chairman, Affordable Housing Committee, CREDAI (National)
With inflation remaining above the targeted level, the status quo on the policy was expected. But it is indeed heartening to note that despite not much room available for lowering of rates, the apex has yet ensured some relief for the real estate sector. The lower of risk weightage on home loans and linking it to LTV only will ensure more credit to customers and thereby to the sector. Also, by announcing that accommodative policy stance, RBI has indicated that interest rate is unlikely to harden anytime soon, which again augurs well for the sector”.

Pradeep Aggarwal, Founder & Chairman – Signature Global Group & Chairman – ASSOCHAM National Council on Real Estate, Housing and Urban Development
“It was an expected move by the RBI to keep the repo rate unchanged, and it is commendable that it is doing its part to ensure that the economy stays on the right path. Loan on LTV will be helpful for the real estate sector, and it will help them get more loan amount.”

Abhishek Bansal, Executive Director, Pacific Group
It was an expected move, as we all understand that the repo rate is already low. The real estate market has started picking up as people are enjoying the low-interest rates and subdued pricing. The sector is also enjoying the fruits of the changed mindset of people towards owning a real estate asset, be it for living or earning extra income. The safety of real estate investment that came to the fore will gain steam during the festival season as fence-sitters too will come out in great numbers.

Deepak Kapoor, Director, Gulshan
RBI Governor Shaktikanta Das announced that the repo rate would remain unchanged at 4 per cent and reverse repo rate at 3.35 per cent. The apex bank has also announced that it is ready to take steps that will infuse liquidity to improve financial conditions. The market will eagerly wait for these steps as improvement in economic conditions of other industries will have a direct bearing on the real estate sector. The realty sector is already reaping rewards of the multiple steps taken by the government and low home loan interest rates extended by banks. RBI should have made some announcement to improve liquidity in the real estate sector, as many developers are facing the heat after COVID-19 led to a complete shutdown of operations. The optimism of RBI regarding economic growth is welcome, and we hope that the government pays attention to the requirements of the sector, which is the largest employer in the country.”

Achal Raina, COO, Raheja Developers
The extension of lending limit for retail exposure from Rs 5 crore to Rs 7.5 crore along with the reduction of risk weightage on home loans and linking it with LTV ratio augurs well for the real estate sector.

Yash Miglani, MD, Migsun Group
The real estate sector is enjoying the fruits of high consumer confidence for the past few months, and it will attain newer heights in this festive season. We were expecting the repo rate to remain unchanged, and the decision of the RBI it will have no impact on the sector in the current scenario. In the latest announcement, the provision of housing loan to be linked with LTV is going to help the buyers, and hence the sector will see more sales.

Harvinder Singh Singh Sikka, MD, Sikka Group
We understand the reasons for keeping the repo rate unchanged. However, one favourable measure for the real estate is that the new housing loans will be linked on to loan to value (LTV). It will help the buyers get loans easily and realize their dream of buying a home. The buyers are already coming back to the sector and the coming festival season would be a lot better than the previous years.

Rajat Goel, JMD MRG World
RBI has kept the repo rate unchanged at 4% and reverse repo rate at 3.35%, during its recent announcement with the prediction of GDP decline about 9.5% for FY 21, which is on similar lines with the prediction from rating agencies. Affordable housing segment has seen a good number of enquiries from end-users amid the uncertain market conditions which is a sign of positivity. Apart from this, RBI’s decision to take steps for infusing liquidity remain awaited, which will prominently affect the overall sentiment of the real estate sector.

Amit Jain, Managing Director, Mahagun Group
The announcement was on the expected lines; the good thing is that the RBI looked optimistic about the economic growth, which is a good sign. Real estate sector has already started witnessing positive growth and is speedily recovering from the loss of lockdown. The momentum is picking up pace in this festival season as buyers are enjoying low home loan interest rates.

Vikas Bhasin, CMD, Saya Homes
We are optimistic that the measures announced by the RBI will help revive economic growth. Multiple announcements were made that will help other industries to go on a growth trajectory; this will have an indirect impact on real estate growth too as the sector is susceptible to economic changes. However, after the Unlock, the real estate is on a high note as people swarmed real estate sites to get hold of a property.

Raman Gupta, Director- Branding & Construction, GBP Group
In today’s announcement, the apex bank has maintained the status quo by keeping the repo rate and reverse repo rate unchanged. It was an expected move to keep the economy on its path to revival after being hit by Covid-19. Over past few months, people have realized the importance of owning a home and at this time when people are adjusting to the new normal, they have been seen exploring the stable investment options and real estate is topping the chart. The low-interest rates and onset of the festive season is certain is bring cheers to the real estate sector. Apart from keeping the repo rate at as low as 4 pc, RBI has also announced that it is ready to take steps that will infuse liquidity to improve financial conditions and we are looking forward to its positive impact on the recovering Indian Real Estate sector.

Kushagr Ansal, Director, Ansal Housing & President, CREDAI Haryana
The decision of the RBI to keep the new housing loans only to loan to value will encourage more buyers to come forward. The real estate market was looking good after the Unlock, and this particular step will make more fence-sitters to decide on buying a home. Apart from that, the good sign is that the apex bank is optimistic about economic growth. The measures that the RBI took in the last few months are showing a positive impact, and we hope that the latest decisions will help the economy recover faster.

Business World

Acceptance for Gurugram has increased, and it is now a complete real estate hub: Realtors

Sep 11, 2020 by Gouri Achary 0 Comments #Dwarka-Gurugram Link Expressway, #Gurugram., #Pradeep Aggarwal, #real estate hub

During the early 2000s, Gurugram burst on to the real estate scene with the offerings targeted mostly at DINK couples or people working in MNCs. The price tag of the properties even at the time was as the prices of many of the properties even today in Delhi NCR. It enjoyed, rather marketed well, its proximity to the international airport. However, over the year the city has turned out to be a complete real estate market with offerings for all segments of people. Now, it has affordable housing hubs, areas where properties for the middle class are available, and the high-end class.

Talking about the journey of Gurugram real estate, Pradeep Aggarwal, Founder & Chairman, Signature Global and Chairman, National Council on Affordable Housing, ASSOCHAM, says, “It used to be the place for people with aspirations and movement of MNCs made it the sought-after place especially by the people working in these organizations and people who would love to live around an area that can give them good employment opportunity. Gradually, realtors also realized that the market is not only for one segment but for real estate to grow they have a focus on all segments.”

In the mid-2000s, the two places that were in the limelight as far as Gurugram real estate goes were the Golf Course Road and the MG Road. While Golf Course Road offered a good mix of residential and commercial, MG Road was popular for malls and its connectivity to the NH-8. Then in the late 2000s, developers started focusing more on Golf Course Road and Northern Peripheral Road (NPR) mainly because of the saturation setting in along these locations. The impact was the rise in prices as from Rs 3,000 per sq.ft. in 2008 they went beyond Rs 6,000 per sq ft in a short time. The confidence in these areas was such that developers were selling projects at higher prices and no good project priced less than Rs 6,000-7,000 per sq ft towards the end of 2012. Projects launched in these areas got a good response, which is shown in the way they used to be sold within the days of being launched.

In 2008-2009, all the attention was around Dwarka-Gurugram Link Expressway (Northern Peripheral Road, NPR). Buzz reached a crescendo when work was allotted on the stretch and progress was witnessed. Just like the 1990s saw the focus on providing access to the Maruti Udyog factory (the “old highway”) to the current NH8, the same exuberance was around the NPR. Interest developed around the area because it will provide good connectivity — faster access to the airport and Delhi. The road starts from Dwarka crosses Bijwasan, New Palam Vihar, Kherki Daula, and finally meets at NH8. Sectors that are still reaping rich dividends are sector 99-113 and sector 83 and 84. Other residential sectors that are little far away from the expressway but benefited from it are 81-86, 89-93 and 95.

“The development of the Dwarka Expressway proved to be a boom for the real estate sector facilitating the overall development of the Gurugram region in the long run. Road connectivity is of paramount importance along with other infrastructure advancements in the region. Therefore, the development of the stretch will not only reduce the travel time between New Delhi and Haryana but will also open up world-class avenues for planned commercial and urban development in the region,” says Nayan Raheja of Raheja Developers. “This is the lifeline for the people who are living in Dwarka and working in Gurugram. Dwarka expressway is developing as a hub for commercial and entertainment activities and is amongst the most preferred locations to stay in the NCR region with its proximity to Gurugram and link to Delhi-Noida,” he adds.

Buyers, as well as developers, were jostling to get a fair share of the pie in this area. “This area got a boost by the expressway. The biggest risk for any buyer in this area was a potential delay in the construction of the NPR. It got delayed but now things are on the right path. The appreciation of the property prices is good near this area. At that time the prices were around Rs 3175 but now the prices have reached 6000-7000 mark.”Says Sanjeev Arora, Director, 360 Realtors.

Connectivity to the real estate projects always acts as a pull for the buyers/investors and this has proven true for Gurugram also. “This factor has led to the development of many Sectors in Gurgaon and the latest options available in the Gurugram are the areas around Dwarka-Gurgaon Link Expressway (Northern Peripheral Road, NPR). As in 1990s, NH8 gained popularity, Dwarka-Gurgaon Link Expressway is receiving the same or in fact more attention. As of now Gurugram is in the lead when it comes to meeting the demands of varied customer base, and soon it will take a lead in affordable housing also as many projects are being launched in this segment,” says Rajat Goel, Joint Managing Director, MRG World.

Simultaneously, Sohna Road started picking up the pace and around 2010 it was among the top 5 most searched localities in Delhi NCR. The area has maintained the interest of the people owing to the variety of offerings including commercial, luxury, mid-income, and affordable housing. Now known as South Gurugram, it shows promising improvement on many of the key parameters of the livability index that can help the location come up as an urban centre in a five to seven years horizon, making it a hotspot for future urbanization. It scores well on key criteria including current and future connectivity to other locations, facilities for health and education, the proximity of the location to business growth and development hubs, civic infrastructure, etc.

A total population of 6.4 Lakhs is projected to live in South Gurugram by the year 2031. It is also very favourably linked to various primary employment locations, be it the service sector or the production and manufacturing sites. One of the main parameters is the affordability of housing has currently been valued high as the cost of the majority of residential houses ranges between Rs. 37-58 lakh for 2-BHK and Rs.61-89 lakh for 3-BHK. These projects give the tremendous potential for the housing of all kinds in the Gurugram region.

The signs of the potential of the location may be gauged from the fact that it is covered by the Delhi – Mumbai Freight Corridor, which would ensure that secondary and tertiary industries are established (or already existent). The area’s popularity is also growing as it becomes one of the NCR’s economically responsive real estate destinations as the property prices are as low as half of the Gurugram nucleus’ prevailing prices. “Sohna’s real estate market is led by affordable and mid-segment housing. With massive demand from end-users in the low and mid-income groups and increasing emphasis on affordable housing is also providing further development of this region where more than 40 per cent is under Rs 50 lakh,” adds Aggarwal.

Tag: Pradeep Aggarwal