Latest news with #AnkitShah
&w=3840&q=100)
Business Standard
2 days ago
- Business
- Business Standard
Rate cut to revive housing demand, help affordability: Real estate industry
Housing demand should improve nationwide after the Reserve Bank of India (RBI) cut the repo rate by a larger-than-expected 50 basis points (bps) on Friday, said real estate industry executives. The rate cut comes after housing sales in top Indian cities in the first quarter of 2025 dipped 28 per cent due to skyrocketing residential property prices and geopolitical headwinds, according to Anarock. Experts believe that rate cuts of 100 bps in 2025 may lower the cost of borrowing and equated monthly instalments (EMIs) for homebuyers, as the current average home loan rates are around 8.5 per cent, which may reduce to 8 per cent once the benefit is passed on by the banks to the borrowers. Reduced EMIs are expected to improve buyer sentiment and encourage first-time homebuyers to enter the market, said Shekhar Patel, president of Credai, which represents real estate developers. 'For aspiring homebuyers, especially first-time buyers, this is a golden window to act,' said Ankit Shah, chief operating officer and chief marketing officer of Grahm Realty. Jayant Manmadkar, CFO, Brigade Enterprises, is expecting a strong uptick in residential inquiries and conversions as EMIs become more manageable for aspirational buyers. The rate cut is likely to help demand for interest-sensitive, affordable and mid-segment housing the most. In the past few years, affordable housing has suffered amid declining sales and launches. The momentum in the housing market for the past few years is concentrated in premium properties amid signals that lower segments are weakening, according to Shishir Baijal, chairman and managing director, Knight Frank India. Dr Niranjan Hiranandani, chairman, Naredco & Hiranandani Group, said, 'For the real estate sector, this rate reduction is set to bolster credit lending, accelerate buying velocity, and enhance development momentum.' According to Anarock, affordable housing sales plummeted from 38 per cent in 2019 to 18 per cent in 2024. Supplies dropped from 40 per cent to 16 per cent. 'This effectively lowers the cost of borrowing, making home loan EMIs easier on the pocket and thereby directly improving affordability for buyers. This can potentially boost demand in the Indian real estate sector, especially in affordable and mid-income segments,' said Anuj Puri, chairman of Anarock. The RBI lowered the cash reserve ratio (CRR) by 100 bps to 3 per cent — a step that is expected to help developers access more capital and complete projects on time. 'The reduction in CRR is expected to infuse significant liquidity in the banking system, which will prompt banks to lend even more,' said Pradeep Aggarwal, founder and chairman of Signature Global (India). Sanjay Dutt, MD and CEO, Tata Realty and Infrastructure, believes that in an era of rising construction costs and increased cost of doing business, the rate cut will reduce borrowing costs of developers. 'We hope the rate cut is quickly translated through reduction in Bank MCLR's resulting in reduction in the long-term borrowing costs. Surplus domestic liquidity situation has already helped reduce short-term borrowing costs significantly' Anshul Jain, chief executive of India, SEA and APAC Tenant Representation at Cushman & Wakefield, expected the lower borrowing costs to improve the viability of capital-intensive projects like global capability centres, data centres, and logistics. Samantak Das, chief economist and head – research and REIS, India at JLL, said the rate cut's impact on financial markets will likely attract institutional capital in real estate debt and equity. 'This could unlock financing mechanisms for developers, accelerating project execution and fostering a more competitive and dynamic supply landscape.' Additionally, the developers' community is expecting the rate cut to spur investments into the sector. Vimal Nadar, national director & head, research, Colliers India, believes that over the medium term, the reduction in the cost of capital is also expected to enhance investor confidence, potentially boosting activity in both residential and commercial real estate segments. However, Anarock's Puri believes that the positive impacts may be partially dampened by the global trade tensions and tariffs imposed by the Trump administration, which have increased the cost of imported construction materials and created economic uncertainty. 'We may see some impact on the demand for luxury and commercial projects, and developer margins may be squeezed.'
&w=3840&q=100)
Business Standard
2 days ago
- Business
- Business Standard
Repo rate cut may revive tepid housing demand, boost affordability
Real estate industry stakeholders are expecting the 50-basis-point repo rate cut by the Reserve Bank of India (RBI) to boost housing demand across India, which has been moderating over the last few quarters. The move comes at a crucial time when housing sales across top Indian cities in Q1 CY25 dipped by 28 per cent year-on-year due to skyrocketing residential prices and geopolitical headwinds, according to Anarock. Industry experts believe that the overall 1 per cent rate cut so far this year may result in a lower cost of borrowing and eventually lower equated monthly instalments (EMIs) for homebuyers. Shekhar Patel, President, Credai, believes that reduced EMIs are expected to significantly improve buyer sentiment and encourage first-time homebuyers to enter the market. 'For aspiring homebuyers, especially first-time buyers, this is a golden window to act,' said Ankit Shah, COO and CMO, Grahm Realty. The apex bank's move is likely to benefit the demand for interest-sensitive, affordable and mid-segment housing the most. In the last few years, affordable housing has been suffering amid declining sales and launches. According to Shishir Baijal, Chairman and Managing Director, Knight Frank India, over the last few years, the strong housing market momentum was increasingly concentrating in the premium end, even as there were signals of weakening in the lower segments. According to Anarock, affordable housing's sales share plummeted from 38 per cent in 2019 to 18 per cent in 2024, while its supply share dropped from 40 per cent to 16 per cent in the same period. 'This effectively lowers the cost of borrowing, making home loan EMIs easier on the pocket and thereby directly improving affordability for buyers. This can potentially boost demand in the Indian real estate sector, especially in affordable and mid-income segments,' said Anuj Puri, Chairman, Anarock. Further, a 100-basis-point cut to reduce the cash reserve ratio (CRR) to 3 per cent is also expected to help developers access more capital and achieve timely completions of their projects. 'The reduction in CRR is expected to infuse significant liquidity in the banking system, which will prompt banks to lend even more,' said Pradeep Aggarwal, Founder and Chairman, Signature Global (India). Anshul Jain, Chief Executive, India, SEA and APAC Tenant Representation, Cushman & Wakefield, is expecting the lower borrowing costs to significantly improve the viability of capital-intensive developments, particularly in high-growth sectors such as global capability centres, data centres, and the industrial and logistics segment. Meanwhile, Dr Samantak Das, Chief Economist and Head – Research and REIS, India, JLL, is anticipating a more profound impact on the financial markets, potentially attracting a fresh wave of institutional capital into real estate debt and equity. 'This could unlock financing mechanisms for developers, accelerating project execution and fostering a more competitive and dynamic supply landscape.' However, Anarock's Puri believes that the positive impacts may be partially dampened by the ongoing global trade tensions and tariffs imposed by the Trump administration, which have increased the cost of imported construction materials and created economic uncertainty. 'We may see some impact on the demand for luxury and commercial projects, and developer margins may be squeezed.'
The Hindu
3 days ago
- General
- The Hindu
Awareness activities, greening drives mark World Environment Day
Various awareness activities and greening drives marked the observation of the World Environment Day in Coimbatore on Thursday. The Institute of Forest Genetics and Tree Breeding (IFGTB), Coimbatore, organised a series of awareness campaigns, lectures, cleanliness drives and competitions on the theme 'Beat Plastic Pollution' from May 22 to June 5. An eco-friendly banner promoting the theme 'Ending Plastic Pollution' was installed at the Forest Campus at R.S. Puram to spread awareness. A release from IFGTB stated that webinars on 'Waste to Art' and 'Waste Management Principles' were delivered by Ankit Shah of Prakritik India, Uttarakhand, and S. Vigneswaran, Programme Officer, ICFRE-IFGTB EIACP, respectively on June 2. A campus cleaning drive held June 3 and 4 emphasised eliminating single-use plastics and fostering environmental stewardship. IFGTB Director R. Yasodha inaugurated the cleaning drive. IFGTB organised a series of lectures across various institutions to raise awareness on plastic pollution and sustainable living from May 22 to June 5. Reusable cloth bags and awareness materials were distributed to encourage plastic-free lifestyles. The institute, in collaboration with Indian Oil Corporation Limited and Anna Industrial Park, organised a greening drive that was inaugurated by District Collector Pavankumar G. Giriyappanavar on Thursday. A total of 9,000 saplings of native trees were planted at Anna Industrial Park. It also conducted various competitions such as quizzes, painting, and photography contests from May 22 to June 5, engaging the public in environmental awareness. An awareness poster on 'Beat Plastic Pollution' was also released and distributed. Greening drive by Siruthuli, Cognizant Siruthuli in partnership with Cognizant planted 1,500 saplings of native trees in a farm at Keeranatham on Thursday as part of observing World Environment Day. A statement from Siruthuli said that volunteers would plant 1,200 saplings at Swami Dayananda Vanam at Government Hospital, Sundakkamuthur, with the support from G.S. Foundation on Friday.
