Real Estate Sector Welcomes RBI’s Decision to Maintain Repo Rate, Expects Stable Home Loan Interest Rates and Increased Housing Demand
The real estate industry in India has expressed its satisfaction with the Reserve Bank of India’s (RBI) recent decision to keep the repo rate unchanged for the second consecutive time. The central bank’s move is expected to result in stable home loan interest rates and further boost the growing demand for housing in the country.
The repo rate, which is the rate at which commercial banks borrow money from the central bank, has been maintained at 6.50%. This decision by the RBI has been well-received by leaders in the real estate sector who believe that it will have a positive impact on the housing market.
Dr Niranjan Hiranandani, National Vice Chairman of the National Real Estate Development Council (NAREDCO), applauded the RBI’s accommodative stance amid easing inflation. He emphasized that the stable home loan rates, coupled with favorable market dynamics and an overall positive economic outlook, will encourage homebuyers to take advantage of the current conditions and boost sales in the real estate sector.
Shishir Baijal, Chairman & Managing Director of Knight Frank India, stated that the unchanged repo rate would support housing demand and contribute to positive decision-making among homebuyers. Despite certain growth indicators yet to show sustained recovery, Baijal believes that maintaining policy rates unchanged will foster consumer demand, stimulate economic growth, and benefit the real estate sector, which has shown resilience in the face of interest rate hikes.
Anuj Puri, Chairman of Anarock Group, highlighted that the unchanged repo rate would provide respite to prospective homebuyers looking to avail home loans in the near future. He emphasized that the current interest rates from most banks remain in single digits, making the outlook for first-time homebuyers favorable.
The real estate sector’s optimism was echoed by various industry experts. Anurag Mathur, CEO of Savills India, noted that the unchanged repo rate would lead to sustained demand in the residential real estate market, benefiting developers with debts on their balance sheets. Venkatesh Gopalkrishnan, Director Group Promoter’s Office & CEO of Shapoorji Pallonji Real, highlighted the far-reaching implications of the unchanged repo rate, instilling faith in developers and homebuyers and making homeownership more accessible to aspiring buyers.
Industry professionals, while appreciative of the RBI’s decision, remained cautious about future developments. Vimal Nadar, Head of Research at Colliers India, noted that the unchanged repo rate provided stability for lenders, developers, and homebuyers. However, he mentioned that the persisting global financial instabilities may necessitate the RBI’s intervention in the future.
Overall, the real estate sector in India views the RBI’s decision to maintain the repo rate as a positive development. With stable home loan interest rates and an optimistic market sentiment, industry leaders expect sustained housing demand and continued growth in the real estate sector.
