RBI’s decision of pause on repo rate cuts disappoints realty sector

Knight Frank India CMD Shishir Baijal said the RBI’s decision to not lower interest rate has come “as a surprise and a bit of a disappointment to the industry. Lower interest rate would have helped push up credit demand and investment in the economy, aiding overall economic growth. It would have provided much required reprieve to some ailing sectors like real estate and auto.”

Sanjay Dutt, MD & CEO, Tata Realty & Infrastructure Ltd said, “This time while the focus of the RBI remains to be on reviving the economy, we are disappointed to see no change in the policy rate.” The real estate industry has been facing some difficult times and with inventories piling up the need to push demand and encourage purchase is now more than ever, he added. However, Anshuman Magazine, Chairman & CEO - India, South East Asia, Middle East & Africa, CBRE, said the RBI’s decision to keep the repo rate unchanged is an indication towards the government’s focus on the evolving inflation-growth dynamics.

With concern over rising food prices, Elara Technologies CEO Dhruv Agarwala said, “Under the circumstances, the apex bank had little option but to maintain status quo with regard to the repo rate.” News Corp and Softbank-backed Elara Technologies owns Housing.com, PropTiger.com and Makaan.com real estate portals. Sankey Prasad, Managing Director & Chairman, Colliers International India, said the government along with industry experts should identify and resolve other sensitive issues effecting the sector. Gaurs group MD Manoj Gaur stressed on effective transmission of 135 basis point cut in repo rate this year.