6, Oct 2023
Reserve Bank of India decided to keep the repo rate unchanged before the festive season
Today, the Reserve Bank of India, under the leadership of RBI Governor Shaktikanta Das, has made a significant decision to maintain the stability of the repo rate in anticipation of the upcoming festive season. RBI declared that there will be no alterations to the repo rate, and it will continue to stand at 6.5 percent. It is worth noting that experts had previously anticipated that in light of factors such as inflation and global conditions, there might be a choice to keep the repo rate unchanged. This decision has been welcomed by the real estate sector, which is now optimistic about achieving favorable outcomes during the festive season.
Manoj Gaur, CMD Gaurs Group and President CREDAI NCR
Even though the real estate sector would have wished for a rollback, RBI maintaining the status quo on the repo rate is a laudable step. With festival season around the corner and consumer sentiment high, the sector will continue performing well. However, the current figure is still at an all-time high. Therefore, we hope that RBI succeeds in its intention to curb inflation, and we may witness the low-rate regime again.
Amit Modi, Director, County Group
RBI’s move to keep the repo rate unchanged is an appreciable move as this would bring a boost to the already growing real estate industry. With the festive season around the corner and buyers showing keen interest in real estate investments, the stable interest rates would further encourage their participation in the transactions. This would foster considerable investment in both residential and commercial segments of the real estate.
Nayan Raheja, Raheja Developers
RBI’s commitment to maintain the repo rates has been in resonance with the hope of buyers. This will encourage the real estate market, with buyers from every walk of life approaching to make an investment in the auspicious festive season. The rates have been stable at 6.50% for the past few months, showcasing RBI’s measure to balance inflation without burning a hole in buyers’ pockets. This move is profitable for both developers and buyers.
Kushagr Ansal, Director, Ansal Housing
With the festive season approaching, the Reserve Bank of India’s praiseworthy choice to retain repo rates at their current levels brings significant advantages to the real estate sector. This decision ensures stability and a foreseeable climate, which in turn appeals to investors and fosters enduring investment initiatives. The decision to maintain repo rates at their current level means that borrowing expenses for both homebuyers and developers will stay consistent, establishing a favourable atmosphere for real estate investments.
Ashwinder R Singh, CEO of Residential Bhartiya Urban
In the backdrop of steadfast repo rates, controlled EMIs, and robust developer funding, the Indian housing and real estate sector stands on solid ground. With healthy economic indicators and anticipated strong corporate earnings, our future is bright. As crude prices cool, the Indian economy benefits. We foresee a promising era for the sector, driven by stability and optimism.
Rajesh K Saraf, MD, Axiom Landbase
The decision by the Reserve Bank of India to keep the current interest rates unchanged represents a positive move aimed at alleviating the financial burden on prospective homebuyers. In recent months, the notable increase in monthly EMIs has placed significant constraints on the budgets of individuals from middle and lower-income groups who aspire to become homeowners. By maintaining a stable interest rate environment, there is an optimistic outlook that these potential buyers will feel encouraged to proceed with their plans to buy a home.
Uddhav Poddar, MD, Bhumika Group
The unchanged repo rates will further encourage more customer engagement in commercial real estate. With the festive season set to begin, buyers are already prepared to book their spaces to mark an auspicious beginning. Stable repo rates have strengthened their decision as the interest rates would remain the same without putting a burden on them. RBI has made a smart move to balance inflation as well as encourage investments through this announcement.
Tejpreet Singh Gill, MD, Gillco Group
“The unchanging repo rates, a policy that greatly benefits the markets by ensuring a stable rate and a supportive posture, persist. However, there are specific challenges within the real estate market that require addressing. With the festive season on the horizon, this decision will serve as a blessing for the real estate sector.
Mr. Sanjeev Arora, Director- 360 Realtors
RBI has kept the repo rate unaltered; however, it could have thought otherwise. The Indian economy is showing resilience and there is a visible growth in the manufacturing and service sectors. Inflation has eased out in September despite turmoil in the global economy. India is poised to become the growth engine of the global economy. In such a conducive environment, the central agency could have thought to increase liquidity in the market by lowering the repo rate. It should have helped in the long run.
Mohit Goel, MD Omaxe Group
One year ago, the repo rate was 5.9% (September 2022). Despite RBI maintaining the status quo in the last few MPC meets, including the current quarter, the Repo Rate at 6.5% is still high. Even though the real estate sector has remained unaffected and continues performing well, we hope RBI meets its objective of reining inflation. On a positive note, the RBI’s stance imparts the sector with the hope that the chances of a rate increase in the future are slim.
Salil Kumar, Director CRC Group
RBI’s decision to maintain the repo rates at 6.5% will bring positive developments in the real estate sector. Less volatility in the loan interest rates would increase buyer and developer confidence, fostering long-term growth. The development of both residential and commercial real estate developments is accelerated by lower financing rates, which also boost employment in the construction industry. Interest rate stability will boost investment across a range of markets, from first-time buyers to middle-class strata.
Radheecka Rakesh Garg, Director, Rajdarbar Realty
The decision by RBI not to increase the repo rate will catalyse the housing sale in Diwali. Since the festival season is considered an auspicious time in the country to buy a home, it will boost the festive spirit and the realty sector, and we expect massive traction in housing sale in the coming months.
Prateek Mittal, Executive Director of Sushma Group
RBI has decided to maintain the repo rate for the fourth consecutive time and kept it unchanged at 6.5%. This reflects RBI’s confidence in the economic outlook. Potential home buyers will directly benefit from this move as there will be no increase in loan interest rates. This step will ensure that the real estate sector is able to reach new heights without facing any financial challenges. It is a step to provide relief to the common man and home buyers.
Pankaj Kumar Jain, Director, KW Group
RBI has kept the repo rate unchanged at 6.5 bps only, which was highly anticipated. However, a cut would have been an ideal scenario for buyers and the sector, considering the festival season is around the corner and lowering of interest rate would have bolstered the already high demand but the RBI targets to keep the Inflation 4 per cent only hence a cut was not done.