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Below the Perspective on the Monetary Policy Announcement by Mr. Amit Bhagat, CEO and Managing Director, ASK Property Fund

“Strong macroeconomic factors and the resultant economic growth have been driving residential real estate growth despite a status quo on interest rates. In addition to this, timely project completion has boosted consumer confidence considerably. Unlike in the past, buyers are not postponing their home-buying decisions in anticipation of rate cuts and price reductions, which is clearly reflected in continued sales growth. While interest rates play an important role in home-buying decisions, overall consumer sentiment continues to be positive. However, as the low-income segment is relatively more sensitive to interest rate movements, a reduction could have bolstered home sales in the affordable housing segment.

Cash flows of real estate developers have also improved for most established listed developers due to strong sales and collections. For the last few years, developers have rationalized their debt positions and improved gearing ratios.”

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