Tag: Vikas Bhasin

Business

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

Feb 8, 2024 by Sujata Muguda 0 Comments #Ajendra Singh, #Ambience Group, #Amit Modi, #Ankush Kaul, #Ansal Housing, #Ashwinder R. Singh, #Axiom Landbase, #Bhartiya Urban, #CMD Gaurs Group, #County Group, #CREDAI NCR, #kushagr ansal, #Manoj Gaur, #Mohit Goel, #MRG Group, #Nayan Raheja, #Omaxe Group, #Pawan Sharma, #Pradeep Aggarwal, #Raheja Developers, #Rajesh K Saraf, #Rajjath Goel, #Sanchit Bhutani, #Sanjay Sharma, #Saya Group, #Signature Global (India) Ltd, #SKA Group, #Spectrum Metro, #Trisol Red, #Vikas Bhasin

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 World

Unchanged repo rate, Realtors rely on high consumer confidence

Oct 10, 2020 by Gouri Achary 0 Comments #Amit Jain, #Harvinder Singh Singh Sikka, #kushagr ansal, #Rajat Goel, #Raman Gupta, #Realtors, #Vikas Bhasin

The RBI today kept the repo rate and reverse repo rate unchanged at 4% and 3.35% respectively. The Apex Bank also announced on-tap TLTRO for Rs 1 trillion at 4% till March 2021 and will conduct OMO worth Rs 20,000 crore next week. The RBI governor also announced that the RBI will take steps that will infuse liquidity to improve financial conditions. With the optimism of RBI for a strong rebound of the GDP and inflation to ease to projected target by Q4 of FY’21, real estate sector too is upbeat about economic growth. Prateek Mittal, Executive Director, Sushma Group, said, “At this time when the buyers are seeking stable investment options, real estate sector with low-interest rates emerges as the safest investment proposition and the all-time low repo rate is adding impetus to the same.”

Uddhav Poddar, MD, Bhumika Group & Founding Member, SCAI, said, “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 are 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.”

The realtors feel that the 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 complete shutdown of operations. Nagaraju Routhu, CEO, Hero Realty, said, “Decision of the RBI to keep repo rates unchanged is along expected lines. RBI’s commentary on the economy gives hope for the revival of the real estate sector in the coming quarters. The sector, however, needs handholding by the Government and the RBI to tide over this difficult period. Measures to boost liquidity for the sector are urgently needed. The optimism about economic growth cannot ignore the needs of the common man who is still in ‘cautious spending’ mode. The good part is that the real estate sector is getting attention by the buyers as they have realized the safety of real estate asset, but they do look towards sops from the government that can help them in realizing their dream of owning a home.”

Ashish Bhutani, MD & CEO, Bhutani Infra, said, “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 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.”

Saying that the decision to keep the repo & reverse repo rate unchanged underpins the accommodative policy by the government alongside reining the inflation rate, Ankit Kansal, Founder & MD, 360 Realtors, pointed out “This should have an overall positive impact on the recovering Indian Real Estate industry as the 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.”

Pradeep Aggarwal, Founder & Chairman – Signature Global Group & Chairman – ASSOCHAM National Council on Real Estate, Housing and Urban Development, was of the view that “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, said, “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.”

Maintaining that the real estate sector is enjoying the fruits of high consumer confidence, Yash Miglani, MD, Migsun Group, said, “We were expecting the repo rate to remain unchanged, and the decision of the RBI 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.”

While saying that he understands the reasons for keeping the repo rate unchanged Harvinder Singh Singh Sikka, MD, Sikka Group, added “One favourable measure for the real estate in the latest announcement by the RBI 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.”

Agreeing with others Kushagr Ansal, Director, Ansal Housing & President, CREDAI Haryana, said, “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.”

Raman Gupta, Director- Branding & Construction, GBP Group, was of the view that “It was an expected move to keep the economy on its path to revival after being hit by Covid-19. Over the 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 will 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.”

Rajat Goel, JMD MRG World, said, “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 real estate sector.

Amit Jain, Managing Director, Mahagun Group, said, “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, said, “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.”

Business World

Indian real estate sector to recover faster than expected

Sep 14, 2020 by Gouri Achary 0 Comments #Dhiraj Bora, #Harvinder Singh Sikka, #Indian real estate sector, #MD, #Paramount Group, #SAYA Homes, #Sikka Group, #Vikas Bhasin

The demand for residential property is increasing as is evident from the increasing inquiries and sales conversions over the past few months. The buyers are giving priority to housing especially the projects that have all the facilities that can keep them safer. In spite of all the darkness that sector witnessed during the lockdown, it is returning back with a bang. Besides, maximum investors got enough time to plan during the lockdown and realize the potential of real estate assets.

It is important to understand the downfall, recovery, and growth patterns of the residential segment market in the past decade. The lockdown happened just when the residential market was in demand for the two successive years and then it came to a near standstill for a few months during the lockdown. However, realtors remained in touch with the end-users after realizing the enhanced need of the people to have a property of their own. Going forward, the maximum number of end-users, as well as investors, will prefer homes that take care of the social distancing in addition to providing financial security.

End-users as well as investors are also showing readiness to pay a premium for homes that would include a wellness idea. The coming time will require constant policy support and economic stabilization so that the market remains upbeat.

Vikas Bhasin, MD, SAYA Homes, “It is good to see that customers are coming up with their queries and the demand for housing is coming in the track. Besides, to ensure the operations in a smooth manner as well as to help the customers, realtors are also coming up with various schemes and easy modes of payment methods.”

According to Harvinder Singh Sikka, Managing Director Sikka Group, “No doubt in saying that there was a financial imbalance due to national lockdown, which was necessary considering the spread of the global pandemic. But now it has been observed that there is a good query to sales conversion ratio, which is a positive sign for the sector.”

Dhiraj Bora, Head Marketing and Communication, Paramount Group said, “As per the present situation real estate sector is coming with various schemes & offers and are pushing even the fence-sitters to come forward.”

Business World

Time to invest in the realty sector

Aug 5, 2020 by Gouri Achary 0 Comments #Dhiraj Bora, #Head Marketing and Communication, #Managing Director Sikka Group, #MD, #Mr. Harvinder Singh Sikka, #Paramount Group, #SAYA Homes, #Vikas Bhasin

There is no denying that every crisis comes with some opportunities which allow us to find solutions, work for life & livelihood, and to do well. And a similar thing is with global pandemic coronavirus. Various sectors have faced the impact of this pandemic including real estate but the real estate sector has done tremendous work by using advanced technologies. With unpredictability all around, maximum people are looking for a sense of security. As per the recent reports people would like to have a physical asset during these tough times.

According to Mr. Harvinder Singh Sikka, Managing Director Sikka Group, “The impact of the lockdown on homebuyers has been positive so far. Various schemes announced by the developers, all-time low-interest rates, and subdued prices for quite some time are reasons enough to rekindle the interest of the customers. After the slew of measures taken by the government, the market was seeing an uptrend and the post-lockdown schemes have provided additional reasons to invest in real estate assets before the market goes northward. The resilience of the government towards the economy is being reflected in measures it is taking.”

Vikas Bhasin, MD, SAYA Homes said, “When the entire world is facing an uncertain scenario, the realty sector is considered as the safest investment option as it offers maximum stability. After the stock market crash, people do not want to risk their money in volatile instruments. Fixed income options are not looking very attractive even after a flurry of rate cuts. Higher returns could be expected once the economy starts recovering, which certainly makes this a perfect time for customers to invest in their dream homes.

Dhiraj Bora, Head Marketing and Communication, Paramount Group said, “We cannot say that only schemes are the lucrative factor as buyers are more aware and they weigh in a host of factors before taking a call. The market in real estate saw a dip during the lockdown but it was mostly due to the inability to physically see the property. Post-lockdown, the sector is at a stage where the buyers should get influenced by the government policies that are aimed at easing out the pressure on buyers. So it all boils down to the incentives/schemes/relaxations that a buyer is getting from the government. It is a time when the policies/incentives are in their favour. These revival signals in the economy are propelled by consumer confidence and entrepreneur optimism. The further push will come from the construction and trade sectors. It will also meet the dual objective of the present government that is industrial growth and employment creation. The government has taken a number of steps through stimulus packages to boost the real estate sector so that Indian growth story and consumer confidence can be sustained.”

Schemes are being lapped up immediately by the buyers as they were waiting for the additional benefits that they can get while buying a property. The market has improved and this will reflect in the overall performance of real estate in this quarter. For rates, I would say the market is stagnant as developers have realized that the rates are already at par with the buying capacity of the customers. The likelihood of increase is low and we can see a change of 5-10 per cent in the coming months. Due to various reasons, property prices have not increased for quite some time now and the recent prices can be termed as 35% less than what it should have been. At present, prices in the realty sector are at their bottom and rearing to pick up, making it the best time to invest in property. This time is right for investment because of beneficial home loan rates. The present market conditions are best for buying a home as the home loan interest rates are at an all-time low. A decrease in home loan interest rates post-COVID has become a big trigger for end-users to buy a home.