Real estate sector disappointed as RBI leaves key policy rates unchanged

NEW DELHI: As Reserve Bank of India's (RBI) yesterday announced its decision of not revising the key policy rates at the monetary policy review, the real estate sector has displayed disappointment with the move and also said that interest rates revision is the need of the hour to enhance demand.

Lalit Jain, president of the Confederation of Real Estate Developers' Associations of India (CREDAI), said, “There is once again disappointment from RBI. There was no change in the rates in previous policy announcement and the real estate sector was expecting a rate cut this time. We don't see any positive policies from government which will boost the real estate sector and economy as well.”

Analysts are of the opinion that real estate sector is considered as the growth-engine of Indian economy. The outlook for the sector continues to stay cautious as high inflation rates are impacting the the construction costs.