Friday, December 1, 2023
Friday, December 1, 2023
HomeINB EnglishReal Estate Developers React To RBI’s Decision, Repo Rates Remain Unchanged

Real Estate Developers React To RBI’s Decision, Repo Rates Remain Unchanged

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The Reserve Bank of India announced the latest update on Repo rates and mentioned that it would remain stable at 6.5%. After consecutive hikes leaving multiple industries in a fix, this is the third time in a row that the authorities have decided to keep the rates unchanged. This has brought a positive outlook among real estate developers and prospective buyers from every walk of life, who could invest in real estate without any major concern about the ever-increasing loan interest rates. The move is a precursor to the festive spirits as real estate looks forward to a massive boom in terms of investment in the upcoming festive season.

Manoj Gaur, CMD, Gaurs Group and Chairman CREDAI
In a back-to-back instance of moderation, the RBI’s pause in the repo rate hike resonates well with homebuyers and real estate developers. This development imparts the sector with a newfound certainty that the RBI won’t be tightening the rate anytime soon; future reductions could even be on the horizon if the economy keeps its stride. The current rate at 6.5% is still on the higher side and is a concern, at least for the affordable housing segment.

Ashwinder R Singh, CEO, Residential, Bhartiya Urban
The unwavering commitment of the RBI to maintaining the repo rates at 6.5% underscores its resolute support for a stable housing market. This strategic decision not only enables buyers to invest in real estate with confidence, free from concerns about abrupt interest rate surges but also fosters an investor-friendly climate, promoting growth in both residential and commercial projects. Such a deliberate and confident choice reflects optimism in India’s economic trajectory, poised to generate positive impacts on the real estate sector.

Nayan Raheja, Raheja Developers
The announcement by RBI to keep the repo rate unchanged at 6.5% will boost the realty sector. This is the second consecutive time that RBI has taken this stance. Since May 2022, the central bank has raised the repo rate by 250 basis points (bps). As a result, the present move will encourage residential and commercial development in the country. This move is a nod to growth and could even point towards a reduction in the next meet.

Amit Modi, Director, County Group
The RBI’s commitment to supporting the real estate sector is evident in its decision to maintain the repo rates at 6.5%. This move shall enhance investment, safeguard against inflation, and ensure a stable housing market. By vigilantly tracking inflation and taking appropriate measures, RBI has paved the way for continuous growth in the real estate sector, fostering economic prosperity. This shall encourage buyers from every economic group to come and invest in the real estate sector.

Deepak Kapoor, Director Gulshan Group
The present decision by the RBI to maintain the status quo on the interest rate augurs well for the luxury housing sector. By and large, the luxury real estate domain is less affected by high-interest rates than affordable housing. Still, any further hike would have brought the rates near a psychological breaking point. The decision reduces the element of uncertainty as far as economic policies are concerned. It presents a picture of the country’s resilient economy. We also expect it to spur growth, which again will augur well for luxury realty.

Rajesh K Saraf, Managing Director, Axiom Landbase
Decision of Reserve Bank of India to keep the repo rate unchanged is indeed a positive development. This great decision for the third time is undoubtedly a source of comfort for the real estate industry, which has experienced a notable resurgence over the past many months. This positive momentum is likely to remain sustained as a result of this measure. Nonetheless, we anticipate a reduction in the repo rate in the upcoming months, a move that holds the potential to invigorate both the real estate sector and the broader national economy.

Naveen Kumar, Managing Director, Navraj Group
The great decision by the Reserve Bank of India to6 uphold unaltered repo rates for the third time brings significant advantages to the real estate sector. This action assures steadiness and consistent conditions, drawing in investors and fostering enduring investment ventures. The decision to keep repo rates constant translates to unvaried borrowing costs for homebuyers and developers, thereby establishing a propitious backdrop for real estate investments. Such a resolution offers confidence to prospective investors expansion in the sector, as it ensures that interest rates will not experience any subsequent increases.

Kushagra Ansal, Director Ansal Housing
The repo rates remained constant, a policy that proves highly favorable for the markets as it entails a consistent rate and a supportive stance. Nevertheless, certain hurdles within the real estate market demand attention. The worth of real estate as an asset is poised to perpetually appreciate and fortify over time, given the rapid strides the sector is making in matching demand with top-tier supply.

Yash Miglani, MD Migsun Group
RBI’s consistent repo rate maintenance at 6.5% showcases dedication to fortifying the real estate sector. This move will cultivate investment, and economic expansion and shield against inflation pressures, fostering a robust and enduring housing market. The appropriate monitoring of inflation trends and the much-needed interventions ensure spectacular growth for the real estate sector. We look forward to witnessing the unchanged upward trend in real estate sector in the coming years.

Mr. Ankit Kansal, MD, AXON developers
The continuation of the existing policy of keeping the repo rates unchanged has been on the expected lines. Since February, RBI has kept the repo rate unchanged. This is a good sign for property buying, as the chances of any rate hike in the near future are negligible. This can comfort homebuyers and enable them to make faster decisions. Indian real estate will also be dovetailed by a healthy and well-balanced economic growth trajectory which is marked by a positive economic outlook, an increase in forex reserve, and reduced inflationary pressure. Meanwhile, the downside risk from a global meltdown and geopolitical tension surge can’t be completely negated. In such as case, the monetary institutions in India will be forced to take a harder stance and curb liquidity in the market. Industry players should keep a vigilant eye on this and be prepared for such a scenario as well.

Vikas Bhasin, CMD, Saya Group
We believe that the unaltered repo rate of 6.5% is a significant signal of changing outlook by RBI. Despite the challenges posed by high EMIs and interest rates, the decision shall bolster investor confidence and drive sector growth. The optimistic real estate scenario in the NCR is expected to fuel investments in upscale projects. Middle-income groups’ confidence in real estate investment shall also boost as interest rates remain stable.

Mr. Sanchit Bhutani, Managing Director, Group108
The real estate sector has received a boon as the RBI chooses to retain repo rates. Stability and continuity attract investors, assuring a profitable environment for long-term investments. Unchanged repo rates maintain consistent borrowing costs for homebuyers and developers, cultivating a favourable atmosphere for real estate investment. This decision will surely instil confidence among potential investors and enhance the sector’s growth as interest rates remain steady.

Sanjay sharma, Director, SKA Group
RBI’s decided to keep the repo rate unchanged at 6.5%, maintaining the status quo for the third time in a row. This persistent attitude reflects RBI’s confidence in the current economic trajectory and serves as a guiding light of assurance for potential homebuyers. This move will ensure that the real estate sector may grow without encountering any financial challenges by regularly observing inflationary developments and taking appropriate action.

Mohit Goel, MD, Omaxe Ltd
The RBI’s decision to keep the repo rate unchanged for two consecutive times reflects an improvement in the country’s economic fundamentals and confidence in India’s economic growth. This decision will positively impact residential and commercial segments. However, even after hitting the pause button, the current interest rate is already at its peak in the last four years. We are sure RBI is aware of it and will consider it in its next review meet.

Pradeep Aggarwal, Founder and Chairman Signature Global (India) Limited
The RBI’s decision to keep the current interest rates unchanged is a promising step towards easing the financial burden on prospective homebuyers. The surge in monthly EMIs observed over the past few months has considerably constrained the budgets of individuals belonging to the middle and lower-income brackets who aspire to own a home. By maintaining a steady interest rate environment, there is a hopeful projection that these potential buyers will be encouraged to proceed with their home-buying plans. This, in turn, is expected to inject a renewed sense of momentum into the affordable and mid-housing home segment, fostering a healthier real estate market and enabling more individuals to achieve their homeownership dreams.

Radheecka Rakesh Garg, Director, Rajdarbar Realty
After six straight increases, the RBI’s decision to press the pause button straightaway for two consecutive times is a welcome move. From developers to homebuyers and financial institutions, every stakeholder in the real estate sector stands to gain as the decision fosters stability. This move will foster residential and commercial development in the country. However, as far as affordable housing is concerned, the repo at 6.5% is still on the higher side and is affecting the sector’s development in tier 2 & 3 cities.

Salil Kumar, Director, CRC Group
RBI’s decision to keep the repo rates steady at 6.5% welcomes positive developments in the real estate sector. Reduced uncertainty and volatility would promote confidence among buyers and developers, promoting sustained expansion. Lower borrowing costs drive progress in both residential and commercial real estate projects, speeding construction activity and job creation. The stability in interest rates shall increase investment across diverse segments, from first-time buyers to middle-income strata.

Prateek Mittal, Executive Director, Sushma Group
After six straight increases, the RBI’s decision to press the pause button straightaway for two consecutive times is a welcome move, especially against the backdrop of signs of inflation cooling down and the country promising growth prospects. From developers to homebuyers and financial institutions, every stakeholder in the real estate sector stands to gain as the decision fosters stability and assures that interest rates will remain low. This move will boost real estate across the nation.

Rajjath Goel, Managing Director, MRG Group
“RBI’s strategic hold on repo rates balances growth and inflation for the real estate sector. Unchanging rates at 6.5% would vitalise the sector, curbing sudden price hikes and preserving affordability, a cornerstone of sustainability. This decision shall nurture investment, enhance growth, and maintain a harmonious equilibrium between inflation and viability. It would foster trust among buyers and developers, enabling market growth and consistent expansion.”

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