9, Dec 2023
Consumers and the real estate sector find solace as the repo rate remains unchanged, bringing joy to the industry

Consumers and the real estate sector find solace as the repo rate remains unchanged, bringing joy to the industry

The Reserve Bank of India (RBI) anticipates sustaining the ongoing real estate boom in the current quarter. Following the monetary policy review on Friday, the RBI declared its decision not to raise the repo rate in the final quarter of the fiscal year. The repo rate will be maintained at 6.50 percent for this quarter as well. This move by the RBI has provided relief to both homebuyers and the real estate sector. Homebuyers are pleased with the absence of an increase in home loan EMIs this year, while the real estate sector applauds the RBI’s decision as a positive step.

Manoj Gaur, CMD Gaurs Group and President CREDAI NCR

The housing sector, which has been on a positive trajectory, receives a further boost with the RBI’s decision to maintain the status quo. The market is receptive to the current 6.5% repo rate. New launches by leading developers have received enthusiastic responses; unsold inventory is at an all-time low, and demand for premium and luxury projects has reached unprecedented levels. 2023 has been a spectacular year for the real estate sector. RBI keeping the repo rate unchanged for the seventh consecutive time signals stability will benefit the sector.

Mr. Pradeep Aggarwal, Founder & Chairman, Signature Global (India) Ltd

The Reserve Bank of India’s (RBI) decision to maintain the status quo on the repo rates was expected and well-received. This decision is poised to maintain inflation stability while providing support to economic activities. The consecutive decision to pause the repo rate hike, since February of this year, is a positive development for both borrowers and real estate developers. The stable borrowing rates will be advantageous for potential homebuyers, fostering increased demand. This uptick in demand is expected to catalyze growth in the real estate sector, ultimately making a valuable contribution to the country’s GDP.”

Mohit Goel, MD, Omaxe Group

RBI’s decision to maintain the repo rates at 6.50% is truly commendable, as this would stabilize the upward trajectory of the real estate market. The consumer demand has been at par for quite some time, with the festive season also turning out to be promising for the sector. Stable interest rates would further elevate buyers’ trust in investing their finances in the sector, benefitting the developers. The entire year of 2023 has been a promising one for real estate as the rates have remained stable since the past few announcements. The availability of sound projects and the advent of festivities as an auspicious time for investment have also played a vital role in the sector’s growth.

Amit Modi, Director, County Group

The RBI’s decision to maintain the repo rates at 6.50% is good news for the real estate industry and aligns with the hopes of developers and purchasers alike. This move will further spur investment in the sector as buyers can invest in the projects they choose without worrying about high-interest rates, thanks to the consistent interest rate. This would keep the sector growing and encourage investments in high-end projects as well. The steady repo rates have done a great job of signalling the end of the year, especially after the festive season turning out well for real estate.

Nayan Raheja, Raheja Developers

The RBI’s decision to maintain the status quo on the repo rate is a welcome move. Despite the real estate sector’s desire for a slight rollback, this decision signals stability. It will boost confidence among developers and homebuyers, offering clearer long-term financial commitments and EMIs. With a positive consumer sentiment, the sector is poised to sustain its record-breaking performance. However, the current rate of 6.5% is at an all-time high. We hope the next MPC meeting will consider the sector’s request and pave the way for a return to a low-rate regime

Rajjath Goel, Managing Director, MRG Group

The RBI’s decision to maintain the repo rate at 6.5% for the fifth consecutive time will attract a positive momentum in the housing market. Amidst the escalating housing prices, the unchanged home loan rates will provide some relief to homebuyers. So, we expect both buyers and developers to gain from stable interest rates as buyers would feel more comfortable spending their money in the sector. And the new launches, and expansion of projects in emerging hotspots, will all be backed by this decision of RBI.

Deepak Kapoor, Director, Gulshan Group

RBI’s decision to keep the repo rates stable at 6.50% is in favour of the real estate sector and resonates with both developers’ and buyers’ sentiments, as this would increase investments in the sector. The stable interest rate would allow buyers to invest in their desired projects without burning a hole in their pockets. This would maintain the upward trajectory of the sector, also encouraging buyers who have been inclining from mid-segment projects towards high-end projects. With the festive season already being a boon for real estate, the stable repo rates have marked the end of the year quite well.

Prateek Mittal, ED, Sushma Group

Continuing its status quo maintaining streak, the RBI’s decision to keep the repo rate at 6.5% is a welcome step. With GDP estimated to grow at 7% in FY2024, the Sensex hitting new highs, prices of crude oil under control and inflation tapering down, we expect the real estate sector to continue with the stellar performance it had exhibited in 2023 well into the coming year. The decision indicates stability, which is much needed for robust realty growth.

Ankit Kansal, MD 360 Realtors

The central bank has maintained a watchful stance and kept the repo rate unchanged. It was on the expected lines, as global shocks and difficult weather conditions in certain parts of the country can weigh on the overall inflationary pressure. Inflation has been under control over the past 2 quarters, yet a downside risk can’t be ignored. In this regard keeping the rate unchanged is a prudent step. Meanwhile, Indian real estate will continue to expand fast in the wake of the healthy economic footing. The central agency has revised the GDP growth rate to 7% in FY 24 from 6.5%, which further indicates an upbeat economy. This is one of the best times for the industry, as both demand and supply lines appear bullish.

Ms. Radheecka Rakesh Garg, Director, Rajdarbar Realty

The RBI’s announcement to maintain the repo rate at 6.5% is a significant boost for the realty sector. Consistent with the sector’s mood, this move will be a catalyst in promoting housing in the country. However, the repo rate at 6.5% remains at a 4-year high. It is a concern for affordable housing, which is already under severe pressure and impacting realty development in tier 2 and 3 cities.

Ashwinder R Singh, Co-Chair CII NR Real Estate and CEO, Residential – Bhartiya Urban

The RBI’s decision to keep the repo rate at 6.5% bodes well for the Indian housing and home loans sector. With interest rates stable, home buyers can enjoy a favorable environment for securing loans. The steady stance fosters confidence in the market’s stability. While maintaining an optimistic outlook, potential home buyers can take advantage of this conducive lending environment, anticipating a positive impact on affordability and accessibility within the real estate market.

Kushagr Ansal, Director of Ansal Housing

The RBI’s decision to keep the repo rate stable is commendable as it enhances investor confidence by providing certainty in interest rates. Nevertheless, despite the industry’s growth, a reduction in rates after a series of consecutive hikes would have been more beneficial. Keeping the rates unchanged allows potential buyers to invest in real estate without the apprehension of facing further increases in loan interest rates.

Surender Kaushik, MD, Aryan Realty Infratech Pvt Ltd

The RBI’s move to sustain the repo rates at 6.5% will yield positive outcomes in the real estate sector. The reduced volatility in loan interest rates is expected to bolster confidence among buyers and developers, paving the way for sustained long-term growth. Lower financing rates expedite the progress of both residential and commercial real estate projects, concurrently contributing to increased employment in the construction industry. The stability in interest rates is anticipated to stimulate investments across various segments, spanning from first-time buyers to the middle-class demographic

Vikas Bhasin, Chairman and Managing Director, Saya Group

The RBI’s stance instils hope in the sector, suggesting that good times are back again. The decision to keep the repo rate unchanged indicates macro and micro economic stability. It will catalyse year-end housing sales and contribute substantially to the sector’s growth in 2024. This decision presents the picture of the country’s resilient economy. It is expected to stimulate growth, favourably for the premium housing and commercial segment

Pankaj Kumar Jain Director KW Group and Vice President CREDAI Ghaziabad

RBI has kept the repo rate unchanged citing global economy is showing signs of slowdown. The RBI’s decision to ensure inflation progresses along the target of 4% and CPI inflation projections to be kept at 5.4% has prompted RBI to keep the rate unchanged. The Real Estate Sector always supports for a lower interest rate for the buyers as the reduction of the interest reduces the overall loan which is important for the affordable sector and mid-income buyer. We welcome the move as the rates are not increased but looking for a reduction in the near future.

Sanjay Sharma, Director SKA Group

RBI has decided to stabilise the repo rates at 6.5% over the past few quarters, and the move is quite promising for the real estate sector. This showcases the government’s faith in the economy and its will to encourage the growth of the real estate sector. The stable repo rates would encourage prospective homebuyers with balanced interest rates and would also ensure that the real estate sector booms without any economic challenges. After the festive season, exciting discounts, rising demand, and stable repo rates would further encourage buyers to invest in the real estate sector.

Mukul Baansal, MD, Motiaz

A consistent repo rate at 6.5% provides a stable financial environment for the real estate sector. This steady rate encourages borrowing at predictable costs, fostering investor confidence. With a reliable financial landscape, developers can plan strategically, homebuyers benefit from sustained affordability, and overall, it contributes to a conducive atmosphere for continued growth and performance in the real estate market.

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