Housing sales momentum to continue as RBI holds repo rate

New Delhi, December 09,  2023 : The Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) announced its decision to keep the repo rate unchanged at 6.50 per cent for the fifth consecutive time.

The prospective homebuyers may find relief with the stable repo rate, enabling them to strategize their decisions without the looming concern of rate increases. allowing them to plan their moves without the imminent threat of rate hikes. This stability is anticipated to enhance confidence in the real estate industry, which is currently witnessing favorable developments in the key markets nationwide.

Here is what real estate players have to say on the RBI’s decision.

Mr. Sandeep Runwal – President, NAREDCO Maharashtra
“The RBI’s decision to maintain status quo on the repo rates at 6.50 per cent is a welcome move. The RBI has effectively managed to keep inflation rates within acceptable boundaries. The positive sentiments being witnessed among home buyers and need for home ownership has been amply reflected in the excellent home sale figures generated in the past few quarters.  Also, the government has implemented a range of constructive policy measures that have sustained the housing sales momentum. It is our hope that these positive advancements will uphold the enthusiasm of homebuyers, encouraging them to step forward and buy their dream home. We certainly see this healthy sales momentum continuing into the New Year as well. We hope for the repo rate reduction next year onwards.”

Mr. Pritam Chivukula – Vice President, CREDAI-MCHI and Co-Founder & Director, Tridhaatu Realty
“The RBI’s decision to keep the repo rate unchanged at 6.50 per cent is in line with keeping inflation aligned with target while maintaining liquidity and supporting growth. The ongoing festive season has seen excellent housing demand from home buyers, with sales recording an all time high. Recent government initiatives have been very supportive to the housing sector. The real estate market has been buoyant on the back of appropriate government intervention along with positive policy measures that will insulate the economy from global headwinds.”

Dr. Sachin Chopda – Managing Director, Pushpam Group
“We appreciate the RBI’s decision to maintain the status quo on key interest rates.  In recent years, there has been a significant increase in real estate investments, driven largely by its ability to provide investors with substantial returns on their capital and its rising appeal as an asset class in comparison to alternative investment options.  Going forward, this decision is likely to encourage prospective homebuyers to proceed with finalizing their property investments.”

Mr. Aakash Patel, Director, Atul Projects India Pvt Ltd.

“The RBI’s decision to maintain the repo rate at 6.50 percent is a positive move in the right direction. It will contribute to maintaining liquidity and control inflation in the economy.   This decision will convince  prospective home buyers that now is the opportune moment to proceed with the purchase of their much-anticipated dream homes. This, in turn, is expected to sustain the momentum in home sales.”

Mr Samyak Jain, Director, Siddha Group

“The RBI’s decision to maintain the repo rate at 6.50% is a welcome move. This will help to keep inflation in check and also ensure adequate liquidity in the economy. The real estate market is doing well with a constant flow of buyers visiting the sites and good sales. The need for home ownership coupled with rising income and high aspiration levels have given a strong thrust to housing demand. We expect this positive trajectory to continue into the New Year.”

Mr. Himanshu Jain, VP – Sales, Marketing and CRM, Satellite Developers Private Limited (SDPL)
“We welcome the RBI’s decision to keep the repo rate unchanged at 6.50 per cent as it will keep a check on inflation while maintaining liquidity in the economy. We have seen home sales peak during Diwali and there is a strong demand for housing from prospective home buyers. This decision will further encourage potential home buyers to come forward and finally buy their desired home.”

Mr. Rohan Khatau, Director, CCI Projects
“The RBI’s prudent decision is poised to curb inflationary pressures in the economy. This strategic move aligns with the current peak in market sentiments and robust home sales. By temporarily holding the repo rate, more funds will be available to potential home buyers. Given the significance of home ownership and the  optimistic outlook among potential buyers, it is anticipated that prospective homebuyers will seize this opportunity to initiate their home purchases.”

Mr. Prashant Khandelwal, CEO – Agami

“The RBI’s decision to maintain the repo rate at 6.50% aligns with the government’s commitment to curbing inflation while ensuring ample liquidity in the economy. The Mumbai real estate landscape has witnessed remarkable residential transactions during the festive season, signaling a positive trend in the housing sector. The government’s proactive support for the real estate industry through well-structured policies has contributed to this optimistic scenario. Combined with an uplift in market sentiments, increased aspirations, and income levels, there has been a surge in housing demand, driving home sales. Taking these elements into consideration, we anticipate a sustained robustness in housing demand in the coming days as well.”

Mr. Srikanth C – Managing Director, Intercontinental Infrastructure
“We had anticipated the RBI to maintain a pause in policy rates. The long-term benefits of homeownership have fueled steady growth in the residential segment, sustaining demand in the real estate sector. Going forward, a potential reduction in interest rates in the near future would be favorable to bolster overall market confidence and enhance the attractiveness for potential homebuyers.”

Corporate Comm India (CCI Newswire)