Mumbai: Real estate sector player and industry watchers say an interest rate cut could have set a trigger for housing sales. The Reserve Bank of India on Tuesday left its benchmark rate unchanged saying it still needs more proof that inflation is under control before it can start lowering lending rates.
Pradeep Jain, Chairman, Parsvnath Developers, said, “RBI is only looking towards taming inflation. It is overlooking the pressure being borne by key sectors. The recent fall in manufacturing growth is a live example. The overall GDP growth forecast has also been cut by many experts. The RBI should understand that curbing inflation at the cost of growth is not a wise step. It should stand up and cut the rates in its next review to pump funds into the economy and the real estate sector in particular which is one of the major contributors to the GDP."
Anshuman Magazine, Chairman & MD, CBRE South Asia, said, “For the real estate industry, the move may be seen as a lost opportunity. A rate cut at this juncture could have been the trigger for housing sales.”
Rohit Raj Modi, President, CREDAI NCR, said, "A rate cut would have been a boon for the sector at a time when it is coming out of a not-so-good festive seasons. A mere reformatory announcements from the Government would not do much if it is not supported by monetary liberty. We expect the RBI would consider this while its next review and would lower key rates to boost real estate."
Samantak Das- Chief Economist & Director – Research, Knight Frank India, said, “With the recent sales in the real estate sector remaining subdued across the country, stakeholders were hoping for a rate cut this time to initiate tractions in the market. However, given the current scenario of high optimism along with economic fundamentals falling in place, the RBI may look at testing the sustainability of the economic progress for one more quarter.”