RBI stays put to aid in maintaining real estate sector recovery - Ramesh Nair, CEO and Country head, JLL India
(Time Zone: Arizona, USA)
"Higher than expected recovery in Q2 FY 21 GDP reflects the resilience and robustness of the Indian economy. RBI's decision to hold the policy rate and accommodative stance to revive growth on a sustainable basis augurs well for the economy. This is in spite of the fact that inflation for Apr to Oct 2020 is hovering above the higher limits of RBI's inflation target.
The decision to maintain the policy rate was in line with the real estate sector's expectations as the sector is just recovering and is yet to bounce back to Pre-COVID-19 levels. Residential real estate witnessed initial signs of recovery with sales increasing by 34% in Q3 2020 over Q2 2020. The RBI's decision to hold the rate will help homebuyers to avail the benefit of the prevailing lowest mortgage rates. Green shoots of recovery armed with other incentives such as stamp duty reduction in some states and the flexibility of developers in offering best prices/payment schemes will help in further improving home sales."
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