In a highly anticipated move, the Reserve Bank of India (RBI) has decided to keep the repo rate steady at 6.5% for the eighth consecutive time. This decision, coupled with robust GDP growth projections, a strong push for infrastructural development, and an increased pace of project launches, is set to bolster the real estate sector significantly. While the industry has largely welcomed the RBI's decision, developers also emphasized the need for targeted interventions to support the affordable housing segment, which remains a critical area of concern as India strives to meet its ambitious housing goals.
Manoj Gaur, President of CREDAI NCR and CMD of Gaurs Group, remarked. "Even though a marginal reduction in the repo rate would have further raised the real estate sector’s spirit, we welcome RBI’s announcement not to change the interest rate. One area of concern is the affordable housing segment, which definitely requires an intervention. Overall, this is a welcome decision, and the real estate market, with an all-time low unsold stock and experiencing an all-time boom, welcomes this move. The decision supports the growth and stability of the sector."
Mohit Goel, MD, Omaxe Group, shared a similar sentiment, "By maintaining the repo rate at 6.50% for the eighth consecutive time, the RBI has again relieved both buyers and developers. The sector is experiencing remarkable growth, with increased interest in mid, premium, and luxury housing segments. Stable loan rates will benefit prospective buyers and sustain public confidence in the authorities. We expect this positive step to keep the real estate sector on an upward trajectory, benefiting both buyers and developers."
Nayan Raheja of Raheja Developers highlighted several benefits of the stable repo rate. "The RBI's decision to keep the repo rate unchanged at 6.5% for the eighth time benefits the real estate sector in several ways: Consumer Confidence: Stability in interest rates boosts confidence, making home purchases more attractive and affordable. Investment Attractiveness: Real estate becomes a more appealing investment compared to volatile options, attracting both domestic and foreign investors. Increased Purchasing Power: Predictable loan costs leave consumers with more disposable income, driving demand for housing. Overall, stable repo rates support growth, affordability, and investment in the real estate sector."
Sandeep Chillar, Founder & Chairman of Landmark Group, also praised the RBI's decision. "The RBI's decision to keep the repo rate unchanged for the eighth consecutive time is on the expected lines. The real estate sector is on an upward growth trajectory, and the stability in the repo rate will give a fillip to the steady growth while adapting to broader economic conditions and policy directions. By aiming to balance financial stability and economic development, the cautious decision to keep the repo rate unchanged at 6.5% is likely to help the real estate sector maintain its growth momentum, leading to healthy sales in the coming quarter."
Harinder Singh Hora, Founder Chairman of Reach Group, also expressed optimism. "These are great times both for the economy and the real estate sector, including the commercial segment. The decision by RBI to keep the repo rate unchanged will bring cheers to the market. The world sees immense possibilities in India, and the growth trajectory is high. The GDP numbers are also expected to get better, and the real estate share in the GDP percentage is rising. Altogether, RBI’s decision will boost real estate investments."
Uddhav Poddar, Managing Director of Bhumika Group, added, "The decision to maintain the RBI's repo rate is an extremely positive step for homebuyers and investors. By keeping the rate stable for the eighth consecutive time, the RBI has indicated strong confidence in the real estate sector and homebuyers. This will not only help in balancing inflation but also inject new energy into the real estate market, marking a moment of joy for homebuyers and investors."
Kushagr Ansal, Director of Ansal Housing, believes the RBI's decision to maintain the repo rate will positively impact the housing market. "Despite rising housing costs, the unchanged home loan rates offer some relief to prospective buyers. As a result, stable interest rates benefit both buyers and developers, fostering increased consumer confidence and investment in the sector. The RBI's decision is expected to support the launch of new projects and the expansion of developments in emerging areas of interest."
Salil Kumar, Director, Sales & Marketing, CRC Group, stated, "The real estate sector has experienced significant growth in recent years, and the RBI's decision to maintain the repo rate at 6.50% for the eighth consecutive time will have a positive impact on the industry. With rising housing demand, the stability in loan rates will foster greater confidence among buyers and developers, promoting long-term growth. This steadiness in interest rates will enhance both the residential and commercial real estate sectors, creating attractive investment opportunities for buyers across all segments."
Sanjay Sharma, Director of SKA Group, said that the RBI's decision to maintain the repo rate at 6.50% for the eighth consecutive time is a positive step towards reducing the financial burden on potential buyers. "This decision is a significant incentive for potential buyers in the commercial sector to proceed with their property purchases. Certainly, the RBI's decision will accelerate affordable and mid-range commercial projects."
"By maintaining the repo rate at 6.50% for the eighth consecutive time, the RBI has demonstrated a commendable initiative for buyers," says Mr. Gurpal Singh Chawla, Managing Director of TREVOC. "This decision not only stabilises interest rates for potential buyers but also reinforces public confidence in the government. It's a positive step, and we are optimistic that the real estate sector will continue to grow rapidly. Both developers and buyers stand to benefit from this measure."
Sachin Gawri, Founder and CEO of RISE Infraventures, says, "Once again, the RBI has made no changes to the repo rate, which undoubtedly benefits the real estate sector. This decision by the RBI will prove favorable for both investors and homebuyers. The RBI's decision indicates that the country's economy consistently performs well. We are confident that with India's growing economic flexibility and the decline in inflation, there will be further reduction in the repo rate, resulting in growth in the real estate sector, which is already breaking previous records."
Mr. Sanchit Bhutani, MD, Group 108 says, "The RBI has once again taken a commendable step by keeping the repo rate steady for the eighth consecutive time. A stable repo rate provides confidence for investors and home buyers. This stability directly impacts the growth of real estate sector, which in turn makes a significant contribution to India's GDP and future growth prospects."
Rajjath Goel, Managing Director of MRG Group, emphasized the positive impact on potential buyers. "The Reserve Bank has reassured the real estate industry by maintaining stability in repo rates at 6.50% for the eighth consecutive time, bringing relief to potential buyers. With no adjustments made for over a year, buyers can proceed with their investments without facing the pressure of rising loan interest rates. This decision not only alleviates financial concerns but also demonstrates the authorities' commitment to controlling inflation. We commend this prudent move and its positive impact on the market."
Sanjeev Arora, Director, 360 Realtors, noted, "Keeping the repo rate unchanged is on expected lines given the fact that food inflation is rising. Hence RBI will be in a wait and watch mode. Also, the agencies will give some time to the new government before taking any significant monetary decision. The silver lining is that real estate will continue to clock double-digit growth backed by a steep rise in demand. The market will be upbeat in the times to come, marked by increased end-user and investor participation."
Ashwani Kumar of Pyramid Infratech commented on the advantages for developers and buyers. "The RBI's maintenance of the repo rates at 6.50% offers developers and potential buyers eyeing investments in the sector advantages. The sector has already been performing well over the last few years, and the decision to keep the repo rate unchanged will benefit both prospective buyers and developers. This stability is expected to enhance both residential and commercial real estate sectors, creating appealing investment avenues across all buyer segments. This will also boost the affordable housing segment, which is looking for some relief."
Pawan Sharma, MD, Trisol RED, highlighted the positive growth in the housing market. "The decision to maintain the repo rate at 6.5% is expected to bring about positive growth in the housing market. Despite the increasing cost of housing, unchanged home loan rates provide some relief to potential homebuyers. Consequently, stable interest rates benefit buyers and developers, fostering confidence and investment in the sector. The RBI's decision is poised to encourage the commencement of new projects and the expansion of development in emerging sectors."
Neeraj Sharma, MD of Escon Infra Realtor, stated, "The RBI's decision to keep the repo rates unchanged at 6.50% for the eighth time is a welcome step. This move will continue to boost momentum in the real estate sector as before. With this decision by the RBI, the flow of potential buyers will also increase because investing will not burden their pockets. Indeed, with interest rates not rising, investor confidence will increase, and there will be faster growth in residential property demand."
In conclusion, the RBI's decision to hold the repo rate at 6.5% has been met with widespread approval from the real estate industry. Developers are optimistic that the stability in loan rates will sustain the momentum in the sector, fostering growth and encouraging investment across various segments. However, the call for more support for the affordable housing segment underscores the need for targeted measures to ensure inclusive growth and to help India achieve its housing aspirations.
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