RBI stays put; to aid in maintaining real estate sector recovery

Kolkata, Dec 04 : Ramesh Nair, CEO & Country Head (India), JLL, on Friday noted that RBI’s decision to hold the policy rate and accommodative stance to revive growth on a sustainable basis augurs well for the economy.

In a statement, Nair said, ” 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, ” Nair observed.

” 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, ” he 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, ” he added.

” 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, ” he stated.

” 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.

UNI

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