News

Check out market updates

Unchanged Repo Rate positive news for home buyers

Unchanged Repo Rate positive news for home buyers

If you have been planning to buy home from long time, then here’s good news for you. RBI has not changed repo rate which ensures home loan interest rates will not go up anytime soon. Experts say that homebuyers will be able to avail the benefit of prevailing lowest mortgage rates. Pradhan mantri awas yojana Gurgaon and Affordable Housing Projects in Gurgaon are all the initiatives taken by Government of India to enable people buy home by 2022. Housing for all by 2020 is the vision of Government owning to which many leading developers have put funds in upcoming affordable housing projects in Gurgaon.

Repo rate is the rate at which the RBI or central bank of India lends money to commercial banks at the time when there is shortage of funds. This is monetary policy vehicle which is used by monetary authorities to control inflation. On the other hand reverse repo rate is the rate at which the RBI borrows money from commercial banks. This is monetary policy instrument which is used by RBI to control the money supply in the country.

Since there was a threat of inflation looming large, the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) has decided to keep the repo rate unchanged at 4 per cent. Analysts were gauging this move from long as it is the inflation and growth data that contribute to this direction in which the MPC will weigh. The Reverse Repo Rate also goes unchanged at 3.35 per cent. This is the best for consumers with home loans and everyone who is considering buying home, experts said.

How unchanged repo rate affect consumer? As clarified by Anuj Puri, Chairman – ANAROCK Property Consultants. “The positive side is that an unchanged repo rate will ensure that home loan interest rates will not harden anytime soon,” He further stated that “It is quite clear that increasing interest rates would impact overall demand at a time when the government is keen to boost consumption,” he said.

“In the wake of Covid-19, Q2 of FY21 witnessed a strong improvement in consumption and therefore RBI maintaining the status quo for the third time in a row is a positive step in keeping inflation under control.” as explained by Anshuman Magazine, Chairman & CEO – CBRE India, South East Asia, Middle East & Africa.

Magazine has all praises for the accommodative stance of the RBI, Magazine said “The way our central bank has maintained an accommodative stance will ensure adequate liquidity in the system and will further reinforce stability in our economy. Additionally, policy support being provided by the government will continue to boost residential uptake and support construction activity in the upcoming months,”

Shishir Baijal, Chairman & Managing Director, Knight Frank India has said the RBI announcement remains in sync with its goal of boosting growth despite the hike in inflation. “Keeping demand stimulated to maintain the current momentum would be critical for continuous acceleration of the economic recovery. Home loan interest rates, which are at the lowest, have played a key role in rekindling the latent demand in housing market by nudging home buyers to make purchase decisions even during the pandemic,” Baijal said.

Ramesh Nair, CEO & Country Head, JLL said 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,” Nair said.

Dhruv Agarwala, Group CEO, Housing, Makaan and Proptiger said: “Even as signs of recovery appear in Asia’s third-largest economy, the RBI has said that it would be open to cutting rates if the economy needs support, which is a very positive signal for the future.”

Register For Project Site Visit
REGISTER
close-link

AFFORDABLE PROJECTS
2/3 BHK 

IN 
 Sector 95, GURUGRAM


2 BHK
20.82 LAKH*

3 BHK
26.30 LAKH*
ONWARDS
GET IN TOUCH
close-link