August 10, 2020

Impact of RBI’s monetary policy on the Realty Sector

Rakesh Reddy, Director, Aparna Constructions, Multiple Sources

The Indian Realty Sector, despite facing the setbacks of the global pandemic has shown significant recovery. As builders continue to plan new projects and take the sector to greater heights, the reformed policies by the Reserve Bank of India will benefit the growth in the coming times. Our Director, Mr. Rakesh Reddy shares his thoughts on the same in his recent conversations with Realty n More magazine and Zricks. He anticipates the following:

Improvement in liquidity:

The builders have previously faced issues due to the lack of liquidity and lack of credit flow facility. But the recently reformed policies have improved the liquidity and streamlined the credit flow system that is expected to benefit the sector in the future.

Loan Resolution plan to lend a hand:

The loan resolution plan provides the luxury of a 2 years payment moratorium without classification as NPAs. This will help maintain the flow of cash and help avoid any roadblocks so the sector can continue to grow.

Cutting down the repo rates:

RBI had previously cut down the repo rates that are expected to benefit the builders if they come to effect immediately. Further, the rates remain steady at 4%, which is most likely to work in the favour of the builders as it will help homebuyers afford loans, hence increasing the demand in the coming times.

To know more details on Mr. Rakesh Reddy’s observations, read the full articles here: