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RBI hikes repo rate by 25 bps to 6.5%, EMIs to get costlier

The Reserve Bank of India (RBI) Governor Shaktikanta Das announced the Monetary Policy statement on February 8, 2023, increasing the repo rate by 25 bps as widely expected. The repo rate hike will undoubtedly push up the home loan interest rates, which had already crept up after five consecutive rate hikes this year.

Here is what real estate industry experts have to say:

Mr. Kaushal Agarwal – Chairman, The Guardians Real Estate Advisory

“Consecutive rate hikes by the RBI this year were aimed at re-anchoring the inflation expectations and maintaining financial stability. Thus far, the rising cost of house ownership led by higher EMI, higher stamp duty and other factors has not affected real estate sales, which is a firm indicator of genuine demand for housing. But any further hike in the repo rate might temporarily limit the growth momentum of the real estate sector. Although the recently concluded budget was tailor-made keeping the salaried and the middle class in mind, a rate cut at this stage could have triggered the sentiments of the homebuyers sustaining the growth momentum.”

Mr. Pritam Chivukula – Co-Founder & Director, Tridhaatu Realty and Treasurer, CREDAI MCHI

“RBI’s decision to hike the interest rates to tackle the inflation and ensure domestic economic recovery was a no-brainer. But a rate cut would have been a big booster for the real estate sector which was overlooked in the recently concluded budget. The sharp acceleration of rates consecutively for the sixth time in a short period will have a short-term effect on the sentiment of homebuyers as low-interest rates have been the biggest factor in the resurgence of real estate demand in the last two years. We hope that the State Government will step in again to lighten the homebuyer’s load by reducing stamp duty to boost the sentiments.”

Mr. Himanshu Jain, VP – Sales, Marketing, and CRM, Satellite Developers Pvt. Ltd. (SDPL)

“Keeping the current market conditions and inflation in mind, the move by the RBI was expected to keep the economy on track in the current highly volatile scenario. The rising property prices had already added to the woes of the homebuyers and now the decision of RBI to increase the repo rate will temporarily dent the current demand momentum. Also, for first-time home buyers, acquiring a home is considered as the biggest asset and these short-term decisions are likely to have a major impact on a buyer’s decision.”

Mr. Bhushan Nemlekar, Director, Sumit Woods Limited

“Earlier, due to the pandemic and the geopolitical issues, the input costs were already high and now with these consecutive rate hikes, it will only dampen the spirit of the entire real estate value chain. The cost of borrowing for both developers and buyers will be impacted and this will result in undesired rate hikes across the spectrum. However, we did not see much impact on the buying spree in the last couple of quarters since there are genuine buyers in the market to keep the momentum going.”

Dr. Sachin Chopda, Managing Director, Pushpam Group

“RBI’s decision to hike the policy repo rate was anticipated, factoring in the rise in inflation. The rate hike is likely to shrink liquidity in the economy overall, especially impacting the investor’s sentiments. There will be a short-term pause on the minds of the investors while assessing the volatility of the current market dynamics. However, they are bound to return soon in the market once it is stable.”

The New India Assurance Co. Ltd Certified Iso 27001:2013 Compliant on Information Security

Chennai, 9th February 2023: The New India Assurance Company Ltd (NIA) has been certified ISO 27001:2013 compliant on Information Security. It is among the very few General Insurance Companies in India being awarded such a certificate.

Information security breaches can be extremely detrimental to businesses both in terms of financial loss and reputational damage. Implementing a robust security system can help minimize the risk of security breaches, making the company more reliable and reputable in the eyes of customers, suppliers, and business partners.

The ISO certification, completed via a third-party audit, helps establish an organization’s reputation as a trusted and secure business. It validates the applicant’s commitment towards following international best practices and certifies it as a world-class entity.

Accordingly, after internal and external audits assessing the organisation’s current IT security levels and threat perceptions, NIA has been considered fit to receive an ISO 27001:2013 certificate. ISO 27001:2013 is an internationally used information security standard that covers business operations, especially those with potential information security risks. The standard covers all the procedures from establishing a security framework to maintaining it and improving company security systems. Accordingly, NIA has enhanced and secured its processes to mitigate security threats.

Commenting on the achievement, Mrs. Neerja Kapur, Chairman cum Managing Director, said, “The world is in the midst of a data and digital revolution. While these are exciting times, they come with their set of unique challenges. Data security has now become paramount and every business entity needs to build robust safeguards and checks to prevent tech-related mishaps. We have realised the severity of the challenge and geared ourselves to face it. The recommendation for ISO 27001:2013 testifies to our commitment. During the course of obtaining the accreditation, we subjected ourselves to an intense examination. I am glad that our processes and systems have passed the most stringent examinations and come out with flying colors. It will be our constant endeavour to implement and maintain the best practices for our customers in India as well as internationally.”

Warner Music India signs deal to acquire a majority stake in Divo, the largest Digital Media And Music Company In South India

Mumbai, February 9th, 2023: Warner Music India has signed a deal to acquire a majority stake in Divo, a leading digital media and music company in India with a presence across all four South Indian language music markets. This investment will help deliver Warner Music India’s strategy of having a leading presence in the entertainment sector across the whole country.

Divo offers online video, music distribution, publishing, digital, and influencer marketing solutions for brands, celebrities, and movies. It has been working with labels, artists, and musicians to help distribute and monetize its content across digital platforms, radio, and TV stations. With a large presence in the Tamil market, and a fair share of the Kannada, Malayalam, and Telegu music industries, Divo released more than 30,000 songs last year.

Warner Music India has grown its presence across the vast majority of regions and cultures in the country with chartbuster releases and strategic partnerships with companies including Global Music Junction, Sky Digital, Tips Music, and Ziiki Media. The label recently forayed into Marathi and Gujarati music with the release of official film soundtracks as part of its strategy to strengthen its presence in the regional music scene. The company also has a regional imprint with its sub-label Maati.

Jay Mehta, Managing Director, Warner Music India, says: “I’m so delighted that we’re able to bring the Divo brand under the Warner Music India banner. This move will strengthen our presence in the south of the country, enabling us to have a truly strong Pan-India presence. Divo’s extensive portfolio will not only bolster our core music offering in South India, but its entire artist-influencer ecosystem will further enhance our overall entertainment footprint.”

Alfonso Perez Soto, President, of Emerging Markets, Warner Recorded Music, adds: “The acquisition of Divo is a major milestone in our Indian journey. We opened for business in 2020 and through a series of strategic deals and culturally relevant artist signings have fast established ourselves as a key player in the market. We’re excited to partner with Shahir and Vishu and the team at Divo, who have built an amazing company that operates at the intersection of four key music markets. Together, we’ll take South Indian music to a global audience.”

Shahir Muneer, Founder and Director, of Divo, comments: “It gives us immense pleasure to partner with Warner Music India. Having the backing of a global partner will put us on the map, helping us to be a force to be reckoned with when it comes to attracting talent and clients. Our music business will benefit from better access to Warner Music’s global footprint and that will help us drive growth for our artist and label partners.”

Vishu Ramaswamy, Director Divo, concludes: “We are glad to partner with Warner Music India for the next phase of our growth. Our ideologies and long-term approach towards expansion in India connected in the right manner and with this association we’re sure that we will become the biggest entertainment entity in South India.”

Hike in repo rate by RBI _Comment from real estate experts..

Mr. Ramani Sastri – Chairman & MD, Sterling Developers

There is no denying the fact that the increase in the repo rate would definitely impact housing affordability. The repeated rate hikes may have a short-term impact on overall housing demand and the buyers’ overall acquisition cost would go up. This comes at a time when the real estate sector had shown recovery across important property markets driven primarily by end-users, and this hike may again impact the rate-sensitive sector. However, there is a silver lining as the government has earmarked a huge outlay on infrastructure and is geared towards higher public expenditure as outlined in Budget 2023-24. Additionally, the buying power of consumers has gone up with greater income flow in recent times. Hence, we believe that the demand for residential segment would remain robust in the near future, any hike in interest rates notwithstanding. Also, the strong fundamentals for housing demand will keep the momentum upwards for realty sales. It also has to be kept in view that real estate is considered as the safest bet for investment compared to other instruments. All of this will boost real estate and enhance economic growth in the larger context.

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Mr. Lincoln Bennet Rodrigues, Chairman & Founder, The Bennet and Bernard Company, known for luxury themed homes in Goa

While interest in homeownership has increased in recent times, the luxury segment was the real estate sector’s growth engine, and this trend is expected to continue in 2023 given change in lifestyles. The hike will not have a significant impact on luxury housing as the demand of home buyers in this segment is beyond these considerations. While the hike has been moderate, the affordability of the home loan is still very good. Luxury real estate has also emerged as a preferred choice for NRIs, HNIs, and the uber-rich during the past couple of years. As buyers become progressively more discerning in their choices for a signature style of living, they will be more willing than ever before to take the leap and purchase luxurious homes. However, a cut in the key rates going forward would be widely appreciated as low-interest rates have played a crucial role in the revival of overall real estate demand and improvement in the liquidity situation, which is vital for the sector.

Arkade Group Completes Rs 100 Crore Land Acquisition Parcel at Mulund -west From Hercules Hoists (Bajaj Group)

Mumbai, February 09, 2023: Arkade Group today announced it has completed the acquisition of approx. 8300 Square meters plot in the Eastern suburb of Mulund West from Hercules Hoists Limited (Bajaj Group Company). Significantly, this is the first transaction in this CY 2023 in Mumbai for the transfer of land of above Rs 100 crore.

Arkade has also perused the document pertaining to the registration of the conveyance deed done at Chembur, on February 07, 2023. The composite deal value of the deal is Rs. 103.40, which includes transaction value of Rs 90 crore plus stamp duty of Rs 5.40 crore and ULC payment of Rs 8.00 crore. The sale deed shows that payment is made in full and possession is transferred to the buyer.

Sharing details of the transaction, Amit Jain CMD, Arkade Group, “We are looking forward to launching an exclusive residential project offering 2 & 3 BHKs with a construction area of approx. 5,00,000 square feet and a topline of Rs. 600 Crore. This acquisition is in addition to the two million sq. ft. development ongoing across Western suburbs” under the Arkade banner. This deal reassures the belief in Mumbai Real Estate Market which is witnessing an upward trend post-lockdown.

Agro and tourism industries witness high talent demand, Budget allocations to further growth: foundit Insights Tracker

Mumbai, 09 February 2023: foundit (formerly Monster APAC & ME), one of India’s leading talent management platforms, today published the foundit Insights Tracker (fit) for January 2023. Hiring activity in the Indian white-collar space recorded a slight dip of 2% month-on-month, as observed in the fit. Despite facing numerous challenges and trying times in the global economy, many industries in India have showcased commendable resilience and growth.

With the announcement of the 2023 Budget, the employment outlook for the Indian job market remains optimistic with huge potential for growth and economic progress in the months to come. Key industries such as Retail, Travel & Tourism, Advertising/PR, and Agro have exhibited continuous growth, with the report reflecting a 6% growth in job posting activity over the last 3 months. Year-on-year, a decline of 2% was registered as January 2023 saw an index of 277. This dip can be attributed to the hiring slowdown in sectors such as IT, BFSI, Telecom, Manufacturing, and Healthcare.

Interestingly, the Tracker has observed a resurgence in the job market for entry-level and intermediate positions, particularly in the HR/Administration and Purchase/Logistics/Supply Chain sectors, after a temporary dip in the recent months.

Commenting on job trends for September 2022, Sekhar Garisa, CEO – foundit (previously Monster APAC & ME), a Quess company said, “The Union Budget 2023 has identified the acceleration of growth and job creation as key priorities for economic development, while undoubtedly reiterating the need for Indian youth to be skilled and employable. The government’s impetus towards the creation of jobs in tourism as well as the green economy holds expansive potential. Along these lines, foundit has noted a 64% growth in demand for green jobs since January 2022 and this growth is expected to continue. Upskilling measures in niche areas like coding, artificial intelligence, robotics, mechatronics, and Internet of Things (IoT) will enable a pool of opportunities in the upcoming months allowing for expansive adoption of tech across all sectors.”

Retail and agro-industries continue to hire while IT, BPO, and Telecom witness a slowdown

In January 2023, Retail (+8%) and Agro-Based (+7%) industries showcased the highest job posting activity on a month-on-month basis. Personalisation and omni-channel innovations through the adoption of advanced analytics, automation, and complex inventory systems have created a tech-focused pool of opportunities in retail with analytical skills high in demand. In fact, the Tracker reflects that Retail was the top industry with hiring growth of 19% on a year-on-year basis as well.

Job prospects for the agro-industry continue to soar and this is expected to grow considering recent Budget allocations supporting the growth of Agri-Tech players. Travel & Tourism (+5%) continued to hire on a monthly basis and even showed remarkable growth from the previous year at 15%. Keeping in mind the tourism push in the Budget with ‘Dekho Apna Desh’ and similar initiatives, it is safe to say that Indian tourism will steadily pick up in the months to come. Other industries such as Oil/ Gas/ Petroleum, Power (+6%), Ad, MR & PR (+6%), Import/Export (+3%), and BPO/ITES (+2%) reflected similar trends (Jan 2023 vs Dec 2022).

However, Production & Manufacturing (-8%) noted a drop in hiring intent, as did Healthcare (-7%), IT Hardware & Software (-7%), Telecom (-5%), and BFSI (-3%). While Indian IT faces a lull due to global macro conditions and course correction from last year’s hiring surge, production hiring was impacted due to cost pressures and a rise in input prices. BFSI, which had continuously monitored positive hiring numbers, has noted a marginal dip of 1% annually. That being said, tech skills are still in high demand by recruiters across all sectors.

Hiring dips across several metro cities

City trends indicate that Chandigarh recorded a growth of 1% month-on-month in January 2023, and Delhi-NCR, Kochi, and Ahmedabad saw stabilized hiring demand. While Mumbai, Bangalore, Pune, and Jaipur witnessed a marginal hiring drop between 1-2%, metro cities such as Hyderabad (-5%), Chennai (-5%), and non-metro cities such as Kolkata (-8%) and Coimbatore (-5%) recorded a greater fall in demand for talent due to the dip seen across multiple industries.

Demand for Logistics personnel adept in tech skills grows

Jobs in HR and Admin (+5%) showed a positive outlook as companies aim to sustain human resource planning, employee welfare, L&D, and recruitment practices. Interestingly, hiring for Purchase, Logistics, & Supply Chain (+3%) professionals saw a rise as India Inc. looks to build resilience through tech-enabled resilient supply chain ecosystems. Engineering & Production (+3%) and Marketing & Comms (+1%) professionals reflected positive demand growth as well.

However, owing to the recruitment dip across BFSI, IT, and similar industries, demand for Finance & Accounts, Software Hardware Telecom, Healthcare, and Customer Service roles tumbled by 3-5%.

Hybrid work model continues to prevail across key sectors

Post-pandemic, several work models were introduced globally, helping organisations stay afloat through testing times. Three years in, workforce and workplace dominate many debates and conversations with continuous shifts in employee and employer preferences. Pre-pandemic, foundit recorded a total of 8% work-from-home (WFH) jobs on the portal, whereas this number spiked up to 72% during the pandemic. In 2022 as many companies moved back to offices implementing newer models, the concept of hybrid working came up which offered flexibility and work-life balance to employees. Hybrid jobs held a 40% share of total job postings on foundit in 2022, while the share of remote jobs went down to 18%.

A look at current-day trends indicates that as of January 2023, hybrid jobs take up 29% share of total job postings indicating that this work model is still widely adopted and preferred by many. However, the share of remote jobs has slid down to 11%, which is a smidge higher than pre-pandemic levels.

Indian IT, which held the highest share of remote jobs on foundit (74% in 2022) also saw a drop in remote and hybrid jobs to 58% in January 2023. However, it is noteworthy to mention that the industry still contributed to over half of the total number of remote (23% share) and hybrid (35% share) jobs on the platform.

IKEA lowers prices to attract more home furnishing lovers

Mumbai/Pune(S.N) – IKEA India has lowered prices for many of its products without an end date as part of its long-term steps to make home furnishings more affordable and accessible for the Indian market. It is applicable for both its offline and online offers.

Considering recent unprecedented situations such as the pandemic, rising costs of living, supply chain disruptions, and increased inflation, IKEA India has taken a step further to restrengthen its affordability agenda. These concerns were also highlighted by most Indians in IKEA’s Life at Home report 2022. The company announced lower prices for products across categories including store and organise furniture, storage solutions, living room seating, bedroom furniture, office storage, kitchen accessories, children’s storage, etc. This is a long-term initiative for IKEA to strengthen its affordability agenda. The prices of these products have been reduced starting from 16% to as much up to 39%. This initiative is aligned with IKEA’s omnichannel experience for the consumers as the low prices are also reflected in their food offerings and services.

Susanne Pulverer, CEO & CSO, of IKEA India said, “At IKEA we believe that everyone should be able to afford home furnishing products and solutions to be able to create homes they love. We are constantly challenging ourselves to find new ways to keep production costs as low as possible without compromising on design, function, quality, sustainability, health, or safety. Local sourcing, new & innovative solutions & materials, construction techniques, distribution, and transportation are some of the ways that help IKEA keep a competitive price point. We will continue to invest in creating a positive impact on society and the economy.”

IKEA India offers over 1100 products below 200 INR to become more affordable and accessible to many people. You can buy your favorite IKEA products at lower prices at any of their stores in Hyderabad, Mumbai, and Bengaluru, from their online store or the IKEA app.

Rate Hike As Expected, May Further Impact Affordable Housing Demand

Anuj Puri, Chairman – ANAROCK Group

The 25 bps rate hike is much along the expected lines. With repo rates now at 6.5%, there could be some repercussions on housing uptake as home loan interest rates will head further north. The rates had already crept up after five consecutive rate hikes over the last year. This will add to the financial burden on homebuyers as apart from home loan interest rates, property prices have also inched up in the recent past two to three quarters.

Given that interest rates may breach the 9.5% mark with today’s hike, we may see some pressure on sales volumes in the affordable and lower mid-range housing segments, which are more cost-conscious. The affordable segment has already been in the doldrums and adding further to the cost of acquisition obviously does not help.

That said, the Indian housing market continues to be largely end-user-driven – and end-users, unlike investors, focus less on ROI and more on the perceived value of homeownership. Furthermore, commodity prices are now falling and inflation is moderating. As such, we are unlikely to see any hikes in the near future, which will be positive for the housing sector in the times to come.

The monetary policy impacts real estate demand in several ways. When the central bank raises interest rates, borrowing costs for buying real estate increase, which can reduce demand for housing. Conversely, when interest rates are low, borrowing costs are lower, and demand for real estate may increase. Also, an expansionary monetary policy, which increases the money supply, can lead to increased consumer spending and borrowing, potentially driving up demand for real estate.

Finally, confidence in the economy is closely tied to monetary policy. When the central bank is seen as effectively managing the economy and maintaining stability, it can increase consumer confidence and demand for real estate.

Quixy graces high-octane panel on the game changing technology that is Low-Code / No-Code

Hyderabad, February 8th, 2022 – NASSCOM, the premier trade body and chamber of commerce of the Tech industry in India, has today hosted an insightful panel on the democratization of software development through Low Code and No Code technology. The tools gained massive acclaim worldwide for their ability to simplify software development. The NASSCOM panel scrutinized how LCNC is reshaping software development through its ability to deliver new capabilities with lower dependence on developers. Quixy, a leading No-Code technology platform from Hyderabad, in its expert capacity, was invited to share insights on the phenomenon of citizen development and to break down the myths surrounding this novel technology.

During the panel, Mr. Guruprasad Pammi, Head, of Customer Success, Quixy, said “There’s a rapidly growing receptivity in India and overseas for no-code technology owing to its efficiency. At Quixy, we have recorded a growing trust from customers, who have evolved from deploying no-code for simple use cases to more complex and integral functions. Quixy works with over 15 industries that have exploited novel technology to digitize their functions in the nimblest and most cost-efficient way. It is crucial for the government and the IT ecosystems across industries to leverage the opportunities for growth posed by LCNC technologies.”

The panel also witnessed the active participation of Mr. Siddhartha Mohanty, Co-founder & CTO, ARETEANS, and Mr. Manne V. Chowdary, Founder & CEO, AmpleLogic. The panel also widely discussed the success stories born out of the incorporation of NCLC technology into organizational functions.