The real estate sector, which is battling a severe slowdown, has been left disappointed as the Reserve Bank of India (RBI) has kept the repo rate (RR) unchanged at 6.5%.
RR is the interest that banks pay when they borrow money from the RBI to meet their short-term fund requirements.
The sector said despite good rainfall and improved economy, high interest rates were hurting the housing sector.
“The real estate sector feels disappointed with no change in policy rates. The last seven months have borne good news for the sector with the passage of the RERA and GST bills, clarity on REITS and a more than normal monsoon. A policy rate cut by RBI will have provided a boost to the industry,” said Shishir Baijal, chairman and managing director, Knight Frank India, a real estate consultancy firm.
“Considering the country has been blessed with good monsoon we were anticipating that the RBI would take a more balanced view and definitely grant a cut,” said Mr Getamber Anand, president, Confederation of Real Estate Developers Association of India (CREDAI).
The sector is also sore that the previous cuts affected by the RBI have not been passed by the commercial banks to the end users.