New Delhi, October 12, 2024: The Reserve Bank of India’s decision to maintain the repo rate at 6.5% for the 10th consecutive time is a welcome move for the real estate market, especially during the festive season. With interest rates remaining stable, equated monthly installments (EMIs) for home loans are expected to stay manageable, encouraging both current and prospective homeowners. This stability is anticipated to drive increased home sales in the upcoming months, providing a positive outlook for the housing sector. Here’s what industry experts have to say about this decision and its potential impact on the market.
Mr. Prashant Sharma, President, NAREDCO Maharashtra said, “The RBI’s decision to maintain the policy rate at 6.5% while shifting its stance to ‘neutral’ is a balanced approach that takes into account the current macroeconomic conditions and future outlook. This shift in stance provides much-needed flexibility, allowing the RBI to respond swiftly to evolving inflation trends. For the real estate sector, this decision is particularly important as it signals a steady interest rate environment in the near term, which can help sustain the ongoing demand for home loans. A continued focus on stability in the financial ecosystem, along with a projected GDP growth of 7.2% for FY25, provides a positive outlook for the real estate sector, encouraging developers and homebuyers to remain optimistic about future growth prospects. As the sector gears up for the festive season, the maintained policy rate could further support housing demand and investment momentum.”
Mr. Deepak Nair, COO & Co-Founder, The Mentors Real Estate Advisory Pvt. Ltd. opines, “The RBI’s decision to maintain the key policy rates reflects an assessment of the current macroeconomic conditions and future outlook. While the continuation of the current policy rate at 6.5% ensures stability, the potential for rate adjustments based on future inflationary data is a positive signal for the real estate sector. A neutral stance is particularly encouraging for homebuyers and developers, as it keep the hopes for the possibility of rate cuts in the future, which could lower borrowing costs and improve liquidity. However, the RBI’s cautious outlook on inflation, indicating that moderation will be slow and uneven, suggests that we need to remain vigilant about price stability. The projected GDP growth of 7.2% for FY25 is promising, indicating a robust economic trajectory that can further drive demand for real estate. Overall, the policy stance is a step in the right direction, ensuring a balanced approach that supports economic growth while keeping inflation in check.”
Mr. Anil Mutha, Chief Visionary & Co-Founder, Nandivardhan Group said, “The RBI’s decision to maintain the policy rate at 6.5% is a strategic move that signals the central bank’s readiness to navigate changing economic conditions. From a real estate perspective, this stable interest rate environment should bolster market confidence, as it allows developers and homebuyers to plan with more certainty. The neutral stance keeps the door open for potential adjustments in the future, which could be beneficial for stimulating demand in the real estate sector if inflation trends become more favorable.”
Ms. Shraddha Kedia-Agarwal, Director, Transcon Developers said, “The RBI’s decision to maintain the policy rate at 6.5% is a balanced approach that reflects a nuanced understanding of the current economic scenario. A stable policy rate ensures a continued favorable lending environment, supporting homebuyers’ sentiment. However, with the moderation in inflation expected to remain gradual and uneven, we will need to stay vigilant in our planning and investment strategies. Additionally, the projected GDP growth of 7.2% for FY25 is a positive indicator, suggesting that the economy remains on a steady growth path, which could translate into sustained demand for housing and commercial spaces.”
Mr. Samyak Jain, Director, Siddha Group commended the RBI for its effective management of inflation and balancing growth. “The real estate market has demonstrated strong performance, fueled by rising demand for homeownership and increasing income levels. We are optimistic about a surge in demand in the coming months and expect this positive trend to persist throughout the year,” he stated.
Mr. Rohan Khatau, Director, CCI Projects praised the RBI’s decision to maintaining the repo rate at 6.5% as it will help in balancing inflation with support for growth. “We recognize the housing sector’s achievements in recent quarters and commend the government’s initiatives to strengthen the real estate market. The RBI’s decision is a positive signal for the sector, enhancing consumer confidence and encouraging investment in property,” he stated.
Mr. Govind Krishnan Muthukumar, Co-founder & Director, Tridhaatu Realty opines, “RBI’s decision to maintain the policy rate at 6.5% marks a strategic move to balance growth and inflation dynamics. This shift offers the central bank greater flexibility in responding to inflation trends, which is crucial given the current global and domestic economic uncertainties. While the unchanged policy rate may provide stability in the short term, the real estate sector continues to hope for a more accommodative stance in the future that could lower interest rates and boost homebuyer sentiments. With GDP growth projected at 7.2% for FY25, we are optimistic about the long-term potential of the Indian economy. We believe that a stable interest rate environment is vital for the sustained momentum in housing demand, especially in an environment where consumer confidence is gradually recovering. Any future rate reductions could further bolster homebuyer sentiment, encouraging investments in the real estate sector, thereby contributing to the overall economic growth.”
Mr. Himanshu Jain, VP – Sales, Marketing and CRM, Satellite Developers Private Limited (SDPL) expressed his approval of the RBI’s decision to maintain the repo rate at 6.5%, emphasizing its role in controlling inflation and sustaining economic growth. He believes that the RBI’s decision will further motivate potential buyers, encouraging them to pursue homeownership. Additionally, he highlighted the resilience of the economy in the face of geopolitical conflicts, which adds to the overall optimism in the market.
Corporate Comm India (CCI Newswire)
