) Mr Ashwin Chadha, CEO, India Sotheby's International Realty
We were more hopeful of a rate cut this time around, after moves by the U.S. Federal Reserve and other central banks. But the RBI’s decision to hold the repo rate steady for the 10th time in a row shows that India is laser-focused on its own economic landscape, rather than following global cues.
One standout from the Monetary Policy Committee’s (MPC) meeting is the shift to a neutral stance, which suggests they're open to more flexibility. While inflation is on a downward trend, it's still not entirely stable, and the MPC is aiming for that 4% sweet spot.
A rate cut is certainly on the cards if inflation keeps cooling off, which looks promising in the near term.
For real estate, this steady approach is a win. With stable interest rates, homebuyers, especially during the festive season, will feel more confident in making their purchase decisions.
We were more hopeful of a rate cut this time around, after moves by the U.S. Federal Reserve and other central banks. But the RBI’s decision to hold the repo rate steady for the 10th time in a row shows that India is laser-focused on its own economic landscape, rather than following global cues.
One standout from the Monetary Policy Committee’s (MPC) meeting is the shift to a neutral stance, which suggests they're open to more flexibility. While inflation is on a downward trend, it's still not entirely stable, and the MPC is aiming for that 4% sweet spot.
A rate cut is certainly on the cards if inflation keeps cooling off, which looks promising in the near term.
For real estate, this steady approach is a win. With stable interest rates, homebuyers, especially during the festive season, will feel more confident in making their purchase decisions.
2) Mr Vimal Nadar, Head of Research, Colliers India
While RBI has kept the benchmark lending rates unchanged at 6.5%, a change in stance from “withdrawal of accommodation” to “neutral” indicates its clear direction for a possible reduction in interest rates in the foreseeable future. This ongoing stability in repo rate should provide a significant thrust to residential real estate during these festive months as home loan interest rates are likely to remain steady.
Typically, Q4, marked by higher inclination of homebuyers to wrap-up property purchases during the auspicious period combined with instantaneous liquidity benefit aided by developers offering attractive discounts, has historically provided the final push to housing sales across the major markets in the country. Additionally, steady borrowing costs and recent extension of Input Tax Credit (ITC) by the Supreme Court can potentially benefit property developers engaged in construction of commercial office buildings.
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