Thursday 8 August 2024

RBI Holds Repo Rate at 6.5%, Supporting Stability and Growth in Real Estate Sector

In a crucial decision for India’s economic landscape, Reserve Bank of India (RBI) Governor Shaktikanta Das announced on August 8th that the central bank will maintain the repo rate at 6.5% in its bi-monthly monetary policy statement. This key rate, which influences the cost of short-term loans for banks, plays an important role in shaping the financial environment for businesses and consumers alike. By holding the repo rate steady, the RBI aims to strike a balance between economic growth and managing inflationary pressures, thereby supporting the ongoing momentum in the real estate sector.

Manoj Gaur, CMD, Gaurs Group & Chairman, CREDAI National-"For the ninth consecutive time, RBI has maintained the status quo on the repo rate. This aligns well with the country’s economic growth projections and will propel infrastructural development. It also signals long-term stability and augurs well for the real estate sector. However, the affordable housing sector development is lagging, and given the huge unmet demand, this is an area of concern, and we hope that RBI will take it into account in the future

Amit Modi, Director, County Group- “The move by RBI to keep the repo rate unchanged was the need of the hour and we hope it remains the same in near future as well. Looking at the macro economic situation of the country in regards to the middle class, this move was of vital importance for first time home buyers planning to invest in real estate as an asset class, since it’s brings in certain amount of stability in interest rates for those home buyers who are still sitting on the fence, but at the same time aspiring ownership of there dream home. Seen along with the recently announced choice under new indexation policy for Long Term Capital Gains Tax for assets bought before June 23, 2024, this will definitely be seen as favorable act by the huge middle class across India.”

Nayan Raheja, Raheja Developers- “The RBI’s decision to maintain the repo rate at 6.5% for the ninth consecutive time indicates a positive trajectory for the real estate sector. As luxury housing gains momentum, maintaining the status quo will further boost the demand for more properties and strengthen market confidence. On the other hand, it is a huge step towards easing the financial strain on prospective buyers. The sector has already been performing well over the past years, and this decision is anticipated to foster the sector’s growth, opening the gateway for developers to launch projects in emerging areas of interest.”

Sandeep Chhillar, Founder & Chairman, of Landmark Group- “Real estate is a rate-sensitive sector and maintaining the repo rate at 6.50% for the ninth time in a row propels positive sentiments in the realty market. With housing demand at an all-time high, consistent loan rates are likely to see greater confidence among both buyers and developers, paving the way for an upward growth trajectory and a sustained market momentum. This steady approach towards interest rates is expected to increasingly encourage potential homebuyers>”

Ashwinder R. Singh, Co-Chair of CII's NR Committee on Real Estate, CEO Residential at Bhartiya Urban, and Author- "The RBI's decision to keep rates steady at 6.5% provides a stable environment for real estate. This continuity helps maintain affordability and boosts investor confidence. By avoiding rate hikes, the RBI supports ongoing projects and encourages new investments, crucial for sustainable growth in the housing sector."

Kushagr Ansal, Director of Ansal Housing- “The RBI's decision to maintain the current repo rate for the ninth time is a welcome news for the market. With GDP figures expected to improve and the real estate sector's contribution to GDP increasing, this move by the RBI will undoubtedly stimulate real estate investments.”

Yash Miglani, MD Migsun Group- “The RBI's decision to keep the repo rate at 6.5% hfor ninth time has positive implications for the realty sector. With an interest rates remaining stable, prospective homebuyers can take advantage of a favorable lending environment.”

Director of SKA Group Sanjay Sharma- “The RBI’s decision to maintain the repo rate at 6.50% for the ninth consecutive time anticipates an appreciative upswing in the housing market. Amidst the rise in housing prices, the constant home loan rates will bring some relief to homebuyers. In addition, the unchanged interest rates will profit buyers and developers, establishing strong consumer confidence and investment in the sector. The RBI’s decision to keep the repo rate steady will lead to establishing new projects and expanding developments in emerging areas.”

Harsh Gupta, CEO, Sundream Group- “The RBI's decision to hold the repo rate at 6.5% for the ninth consecutive review reflects a strategic balance between fostering economic growth and managing inflation. This prolonged period of stability, the second-longest in the past 25 years, signals confidence in the current economic trajectory. With the GDP growth projection steady at 7.2%, the RBI's policy supports a robust economic environment, encouraging sustained investment and development. This consistent monetary stance reassures markets and investors, providing a predictable backdrop for commercial ventures and long-term planning.”

Rajjath Goel, Managing Director, MRG Group- "The authorities have reinforced the sign of stability by keeping the repo rate constant for the ninth time. With the GDP growth projection steady at 7.2%, this stability of 6.5% in the repo rate will strengthen the buyers’ incline towards the sector. Such steadiness will lower borrowing costs, making real estate development projects more accessible and affordable. However, a modest reduction in the repo rate would be beneficial, offering encouragement to developers and buyers. Given real estate's sensitivity to price fluctuations, the RBI's steady approach is expected to provide a valuable boost to the industry.

Sanjeev Arora, Director, 360 Realtors- “Keeping the repo rate unchanged was on expected lines, following hike in inflation to 5.1% in the month of June. Rise in inflation coupled with uncertainties in the global market and surge in freight prices will dissuade the government to take a more aggressive stance on economy. Rather than liquidity infusion, the focus will be pinned more on stable prices. The silver lining is that EMIs will remain unchanged and the realty demand is not going to cool down soon. Upbeat job market, healthy economic momentum and expansive aggregate demand will continue to drive both housing and commercial real estate in the country in positive direction.”

Prateek Tiwari, MD, Prateek Group – “The repo rate is unchanged at 6.50% which is a strategic move that supports ongoing growth in the real estate sector. The Indian real estate market has been witnessing growth recently, and this steady rate is set to further benefit the sector. Particularly, the luxury and premium segments have seen a notable increase in sales, with buyers eager to invest in high-end properties. We believe this decision will positively impact the luxury real estate market and propel the sector's growth.”

Uddhav Poddar, Managing Director, Bhumika Group-“The projections of GDP growth are robust. Given this backdrop the decision by RBI to keep the repo rate unchanged, this is a sign of stability and it presents a picture of a resilient economy.”

Dr. Amish Bhutani, Managing Director, Group 108- “The RBI has once again taken a commendable step by maintaining the repo rate steady for the ninth consecutive time. A stable repo rate instills confidence in both commercial real estate investors and homebuyers. This stability directly impacts the growth of the real estate sector, significantly contributing to India's GDP and future growth prospects.”

Harinder Singh Hora, Founder Chairman, Reach Group-“We commend the RBI's decision to maintain the repo rate. This strategic move is anticipated to positively impact commercial real estate growth by ensuring stable loan interest rates. Potential buyers in these markets will benefit from not having additional financial pressures, fostering a more conducive environment for investment. This decision is poised to elevate the sector, paving the way for new project launches in emerging areas.”

Prateek Mittal, ED, Sushma Group- "The RBI Governor chose to maintain the repo rate at 6.50% for the ninth consecutive time. This move is promising because it reduces the financial pressure on potential buyers. This decision could serve as a strong motivator for those interested in commercial property to move forward with their purchases. Additionally, it is likely to encourage the growth of affordable and mid-range commercial developments, invigorate the real estate market, and help more people realize their property ownership aspirations.”

Mukul Bansal, MD, Motiaz-"The RBI’s decision to keep the repo rate unchanged reflects their confidence in the economic outlook. This consistency is likely to have a substantial positive effect on the residential real estate market, presenting attractive investment opportunities for a broad range of buyers. We believe this approach will continue to support the real estate sector moving forward. Additionally, the government's efforts to manage inflation will provide further advantages. This stability is expected to benefit both residential and commercial real estate sectors, creating enticing investment prospects for all investors."

Sehaj Chawla, Managing Director of TREVOC- "RBI's decision to maintain the current repo rate, along with its focus on curtailing inflation, brings a much-needed sigh of relief for buyers, bankers, and real estate developers. This stability is crucial as it bolsters market confidence, allowing stakeholders to plan and invest with greater certainty. The unchanged rate, now ingrained in market expectations, further solidifies a foundation for sustainable growth in the real estate sector."

Prasoon Chauhan, Founder & CEO, Aurika Homes- “There is a huge unmet demand for houses in the country. Coupled with the recent budgetary provision to promote urban housing and stability in the repo rate for the last two years, it will boost the real estate sector growth. However, inflation is a matter of concern, and we hope that RBI succeeds in curbing its rise, which in turn may lead to a further reduction in the repo rate.”

Piyush Kansal Executive Director of Royale Estate Group- “The RBI’s decision to keep the repo rate at 6.50% for the ninth consecutive year is expected to positively impact the real estate market. As home prices are rising, the stability in home loan rates will offer some relief to buyers. Furthermore, maintaining these interest rates is likely to benefit both purchasers and developers, boosting consumer confidence and encouraging investment in the sector. This steady rate is anticipated to see the launch of new projects and drive growth in developing regions.”

Pawan Sharma, MD, Trisol RED- “The RBI's decision to maintain the repo rate at 6.5% for the ninth consecutive time greatly benefits the real estate sector. This stability in interest rates enhances consumer confidence, making home purchases more attractive and affordable. As a result, real estate emerges as a more appealing investment compared to volatile alternatives, drawing interest from both domestic and foreign investors.”

Tejpreet Singh, MD, Gillco Group-"The Indian real estate sector has been on a strong upward trend in recent years. The RBI’s move to keep the repo rate steady at 6.50% is likely to further benefit this Real Estate sector. We’ve seen a notable rise in sales within the premium and luxury segments, and stable interest rates should boost buyer confidence and maintain interest in the market. Given the sector’s positive performance over the past few years, this decision will continue to support both buyers and developers. It’s also important to remember that the market tends to recover and grow, and we  expect this trend to continue."

Neeraj Sharma, MD, Escon Infra Realtor -"Real estate investments are growing exponentially, and the RBI's decision to maintain the repo rate at 6.50% for the ninth time will further boost the industry. With rising luxury housing demand, stable loan rates will foster greater confidence among buyers and developers, promoting sustainable, long-term growth. This consistency in interest rates will enhance the residential sector, encouraging developers to curate projects catering to the buyers’ needs.”

Ajendra Singh, Vice President Sales and Marketing, Spectrum Metro- “The RBI's decision to maintain the repo rate at 6.50% for the ninth  consecutive time is a positive step towards easing the financial strain on prospective buyers. This decision is slated to provide a significant incentive for potential buyers in the commercial sector to proceed with their property purchases. Furthermore, it is expected to boost the development of affordable and mid-range commercial projects, foster a vibrant real estate market, and facilitate more individuals achieving property ownership dreams.”

Salil Kumar, Director, Marketing and Business Management, CRC Group- “Once again, the RBI has made a commendable move by keeping the repo rate constant. With an exceptionally performing economy and good GDP growth, stable interest rates will benefit buyers and developers. This will further strengthen the commercial and residential market, offering investment opportunities to all. Considering the upcoming festive season, this announcement will lead to outstanding customer engagement, benefitting the entire sector.”

The RBI’s decision to keep the repo rate unchanged at 6.5% underscores its commitment to nurturing economic stability and growth. This strategic move is anticipated to flourish the Indian real estate market by making home and commercial property investments more affordable. As the sector continues to grow, the steady repo rate provides a conducive environment for further expansion, benefiting both investors and the broader economy. The RBI’s approach reflects a cautious yet optimistic outlook, aiming to sustain progress while ensuring long-term stability in the financial system.

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