The recent announcement from the Reserve Bank of India (RBI) to keep the existing policy rates unchanged has been warmly received across the real estate sector. This decision revealed after the latest monetary policy committee meeting, is anticipated to stand in a phase of stability and growth, mainly advantageous for the real estate domain.
Seen as a strategic move by the RBI, this decision is observed as a trigger that will invigorate growth within the housing market, with experts in the industry predicting substantial benefits for likely homebuyers.
Pradeep Aggarwal, Founder & Chairman Signature Global (India) Ltd
The RBI has once again demonstrated great economic prudence and fiscal foresight by keeping the repo rate unchanged for the seventh consecutive time. A stable and predict repo rate lends credence and confidence to the average homebuyer who can be assured while taking home loans. This stability has a direct cascading effect on the growth of the real estate sector, which in turn contributes significantly towards India’s GDP and future growth prospects
Manoj Gaur, President, CREDAI NCR and CMD, Gaurs Group
An expected move by RBI. With the Indian economy continuing to exhibit robust performance, the decision to keep the repo rate unchanged for the seventh consecutive time will augur well for the real estate sector. The inflation numbers are still a bit of concern. It is a fine balancing act by the RBI. We hope that the move will help India rein in inflation post which we will see the country enter a low-interest-rate regime. At the same time, the decline in the affordable housing segment is a concern that requires a breather in the form of a reduction in the repo rate
Amit Modi, Director, County Group
As RBI announced its decision to maintain the status quo on the repo rate at 6.5% for the seventh consecutive time, it took attention away from two other details. First, it projected the real GDP growth for FY25 at 7% and second, it expects the CPI inflation for FY25 to remain at 4.5%. All three signal towards a robust economic growth and will add to the dynamism of the real estate sector. We are sure that with India’s growing economic resilience and the downward inflationary trend, the repo rate will decline further and add to the vigour of the realty sector already breaching records
Mohit Goel, Managing Director Omaxe Group
We welcome the RBI’s decision to maintain the status quo on the repo rate. The economy, the market, the investors and the buyers are psychologically attuned to this rate, while the realty sector is growing at a rapid pace and finding new footholds in tier 2 and 3 cities. Since this is the seventh time that RBI has kept the rate unchanged at 6.50%, it will not disturb the equilibrium and will help the sector set new records
Ankush Kaul, chief business officer – Ambience Group
RBI has once again satisfied the buyers’ sentiments by keeping the repo rates unchanged at 6.50% for the seventh consecutive time. This will not only stabilize the interest rates for prospective buyers but will also keep the public’s faith in the authorities intact with the elections around the corner. It is a welcome move and we anticipate that the upward trajectory that the real estate sector is sailing on shall continue. This decision shall be beneficial for both borrowers as well as developers bringing an equilibrium in financial volatility.”
Ankit Kansal, Managing Director 360 Realtors
The RBI has kept the repo rate unchanged for 7th time in a row at 6.5%. The central agency has taken the decision keeping the inflation in mind, which is high at 4.5% in FY 25. However, in our opinion the agency could have mulled to revise the rate by 25 basis points, as this would have further helped the economy. Indian economy is slated to grow at 7% in FY 25, which also makes it one of the fastest growing markets in a time, where growth is mostly muted globally. India aims to become the 3rd largest economy by 2030. To further this, government and development agencies need to look for more ways to build capital and infuse liquidity. The forex reserve is at all time high at USD 650 billion and the employment market is upbeat. This will cushion the economy and give agencies space to maneuverer more. Pradeep Aggarwal, Founder & Chairman Signature Global (India) Ltd
The RBI has once again demonstrated great economic prudence and fiscal foresight by keeping the repo rate unchanged for the seventh consecutive time. A stable and predict repo rate lends credence and confidence to the average homebuyer who can be assured while taking home loans. This stability has a direct cascading effect on the growth of the real estate sector, which in turn contributes significantly towards India’s GDP and future growth prospects.”
Kushagr Ansal, Director of Ansal Housing
The RBI’s choice to maintain the repo rate for another consecutive period anticipates a favorable upswing in the housing market. Despite escalating housing expenses, the unchanged home loan rates provide some relief to prospective homebuyers. Consequently, stable interest rates benefit both buyers and developers, fostering heightened consumer confidence and investment in the sector. The RBI’s decision is poised to bolster the introduction of new projects and the expansion of developments in emerging areas of interest.
Nayan Raheja, Raheja Developers
The growth trajectory of the realty sector remains positive, consumption is rising, and more and more people are investing in the mid, premium, and luxury housing sectors. The developers, on their part, have increased the pace of new launches, as exhibited by the recent Q1 report. India is firmly on the path of progress, and the decision by RBI to not disturb the pace by keeping the repo rate unchanged will enthuse the sector as it will also provide some relief to borrowers as their EMIs will not rise.
Ashwinder R. Singh, Co-Chairman, CII, NR Committee for Real Estate, CEO Residential at Bhartiya Urban
“I see the RBI’s decision as a nuanced balancing act between taming inflation and nurturing economic growth. With core inflation easing and GDP projections remaining robust, it’s imperative for the real estate sector to adapt swiftly. Embracing innovation, sustainability, and agile strategies will be key to navigating through the evolving landscape, ensuring resilience and unlocking new opportunities for sustainable growth in the sector.”
Deepak Kapoor, Director, Gulshan Group
RBI’s decision is good news for the country’s realty sector. Even though we would have wanted it to come down by at least 25 basis points, this would have signalled greater confidence in the Indian economy’s growth trajectory and further boosted the sector. Since February 2023, when the RBI first pressed the pause button, the realty sector has witnessed a record jump in sales in the premium and luxury segments. New launches have phenomenally increased, and unsold inventory has drastically decreased. The decision by RBI to keep the rate at 6.50% has cheered the sector.
Pawan Sharma, MD, Trisol RED
The RBI’s decision to keep repo rates at 6.5% for the seventh time will benefit the real estate sector. As interest rates stay constant, we anticipate increasing buyer confidence and continued interest in the industry. The sector has already been performing well over the last few years, the decision to keep the repo rate unchanged will benefit both prospective buyers and developers.
Mukul Bansal, MD at Motiaz
The RBI made a remarkable announcement by keeping the repo rates unchanged at 6.5% for the seventh consecutive time. This came along with two more welcome moves that predicted that real GDP growth would reach 7% in FY25 and that CPI inflation would stay at 4.5% in FY25. Altogether, these would increase the real estate sector’s vibrancy among prospective buyers. This also indicates RBI’s confidence in the state of the economy. This action will directly benefit prospective homeowners because loan interest rates won’t rise
Ashwani Kumar, Pyramid Infratech
The RBI’s decision to keep the repo rates unchanged at 6.50% will benefit developers and prospective buyers looking forward to investing in the sector. As there will be no increase in loan interest rates, it would bring them relief. Further, the government’s stand to balance inflation would give them additional benefits. This stability is anticipated to boost both the residential and commercial real estate sectors, opening compelling investment opportunities for buyers of all segments.
Piyush Kansal, Executive Director at Royale Estate Group
The RBI’s decision to keep repo rates unchanged at 6.50% is positive for the nation’s Real Estate market. Though it would have been outstanding if it had witnessed even a marginal decline, yet this announcement will surely increase confidence in the Indian economy’s growth trajectory and give the industry a boost. Sales in the premium and luxury categories of the real estate market have increased at a record pace since RBI first hit the pause button in February 2023. The number of new launches has sky-rocketed, while stocks of unsold inventories have sharply reduced
Rajjath Goel, Managing Director, MRG Group
The Reserve Bank has brought a sigh of relief to the real estate sector by announcing the stability in repo rates at 6.50% for the seventh time. This will boost the confidence of prospective buyers as the festive season approaches. Since it’s been more than a year since the repo rate was last raised, there have been no more adjustments, and buyers won’t have to bear the burden of increased loan interest rates. Buyers can continue investing in the real estate sector without any increased costs or financial fears. The decision by the authority is praiseworthy, and we welcome the move to curb inflation with this measure
Gurpal Singh Chawla, Managing Director, TREVOC
The Indian real estate sector has been strengthening over the past few years, and amidst this, the RBI’s decision to maintain the repo rate at 6.50% will benefit the sector. Over the last few years, the premium and luxury segment has witnessed an upsurge in sales. Buyers are keen to invest in the luxury housing sector, which has paved the way for the launch of new projects in this segment. Considering the upcoming festive season that will witness outstanding customer engagement, we anticipate this decision will benefit luxury real estate
Dr. Amish Bhutani, MD Group 108
The RBI’s decision to keep the Repo Rates unchanged at 6.5% is a welcome move. The demand continues to be strong as of today, the pause would reaffirm the interest of investors and end- user. The commercial sector is especially expected to showcase a positive demand as the financial volatility is settled and interest rates remain the same. Today’s decision will further help boost demand in real estate, which is the growth engine of the economy.
Yash Miglani, MD, Misgun Group
For real estate in totality, the RBI’s decision to keep the repo rate unchanged at 6.5% is an excellent decision. With the country’s economy doing exceptionally well and projections of decent GDP growth and inflation in check, the sector will continue to perform well in the coming times. However, price-sensitive affordable housing and real estate development in tier 2 and 3 cities are matters of concern, and a slight downward revision would have helped the real estate developers realise their housing dreams
Sanjay Sharma, Director, SKA Group
The RBI’s decision to maintain the repo rate at 6.50% for the seventh 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
Vidush Arya, Head- Strategy, Orris Group
We welcome RBI’s decision to maintain the repo rate at 6.50% for the seventh consecutive time. Once again, this decision is anticipated to positively impact the commercial and residential real estate sectors. Potential buyers in both sectors will benefit from this move as there will be no increase in loan interest rates. This step will take the sector to new heights, relieving buyers and developers and opening the gateway to launch projects in emerging areas of interest.
Vikas Bhasin, Chairman and Managing Director, Saya Group
The RBI has made a welcoming move by keeping the repo rates unchanged at 6.50%. This move is beneficial for both developers and prospective buyers looking forward to investing in the sector. This would bring them relief in terms of loan interest rates, along with the measures by the government to balance inflation that would give them additional benefits. The government has been quite considerate of the buyers’ sentiments and expectations and has been rolling our favourable decisions for the sector that tends to boost its growth
Uddhav Poddar, Managing Director, Bhumika Group
For the last one year, RBI has been holding the repo rate steady at 6.5%. Every stakeholder in the realty sector, including banks and buyers, the two crucial links in the realty sphere, has long factored in this rate, and a present decision will neither disturb it psychologically nor monetarily. This state of affairs is particularly beneficial for the commercial realty sector because it encourages consumption, which in turn will lead to greater footfalls. As a commercial realty developer, we welcome the RBI’s decision
Prateek Mittal, ED, Sushma Group
The RBI has maintained the repo rate at 6.5% for the past 12 months. This rate has long been taken into account by the real estate sector, including purchasers and banks—two of the most important wings of the industry. Stabilising the rates has brought a sense of satisfaction among the prospective buyers, keeping their faith intact. Repo rates remain fixed, a policy that helps the markets tremendously by guaranteeing a stable rate in home loan interests and a supportive stance. This will also help bring a boost to the sector as the festive season approaches, further encouraging buyers to invest in both residential as well as commercial developments
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