Unchanged Repo Rates to ignite housing demand in festive season

New Delhi, October 06, 2023 :  The RBI Monetary Policy Committee has kept the key policy repo rate unchanged at 6.5%. This is the fourth consecutive meeting that the MPC decided to maintain the status quo on the repo rate. The real estate developers have welcomed the RBI’s decision to maintain the existing policy rates, highlighting that this move is poised to boost housing demand in the forthcoming festive season.

Here is what they have to say on the RBI’s announcement:

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 has been in line with the government’s stance of keeping inflation in check while maintaining liquidity in the economy. The government has been supportive to the real estate sector with constructive industry policies.  This pause in the repo rate has come at an apt time given the ongoing festive season which will improve market sentiments and drive housing demand even further. Construction activity has been buoyant on the back of timely government intervention and positive policy measures keeping the economy strong against global headwinds.”

Mr. Vivek Mohanani – MD & CEO, Ekta World

“The RBI has effectively managed to keep inflation rates within acceptable boundaries. RBI’s choice to uphold the current stance for the fourth consecutive occasion was a predictable decision aimed at prioritizing stability. Further increase in policy rates could potentially have a substantial impact on the outlook of prospective homebuyers and their purchasing capacity. Consequently, this could have also restrained the demand which has been on the rise in the past few months. It would be more preferable to witness a forthcoming decrease in interest rates, which could bolster overall market confidence and establish a more attractive environment for potential homebuyers.”

Mr. Rohan Khatau, Director, CCI Projects
“A good move by the RBI will help in curbing inflationary trends in the economy. This comes at a time when market sentiments are at an all time high and home sales robust. This pause in the repo rate will put more money in the hands of home buyers. The importance of home ownership and given the current festive season we can expect home buyers to come forth and make that home purchase.”

Mr. Samyak Jain – Director, Siddha Group

“The RBI’s decision to maintain its key policy rates unchanged for the fourth consecutive time was on expected lines. This comes at a time when property prices are on the rise, which is adding a significant financial strain on consumers. While this decision may not have an immediate effect on potential homebuyers, it does provide some stability to the real estate industry. As a result, it could potentially encourage several prospective homebuyers during the upcoming festive season who were eagerly waiting to buy their dream homes.”

Mr. Srikanth C – Managing Director, Intercontinental Infrastructure

“We had expected the RBI to continue with a pause in the policy rates. The long-term benefits of homeownership have resulted in consistent growth within the residential segment and this has led to a sustained demand in the real estate sector. We anticipate that the current policy rates will persist throughout 2023, and certainly, a potential decrease in interest rates in the near future would be desirable to boost overall market confidence and enhance the attractiveness for prospective homebuyers.”

Mr. Prashant Khandelwal, CEO – Agami
“Maintaining status quo at 6.50 per cent has been a good decision taken by RBI. Given the ongoing festive season, this decision will encourage prospective home buyers to come forward and buy their desired home. As in the past, we look forward to continued support from the government with policies that will sustain growth of the sector, going forward.”

Mr. Himanshu Jain, VP – Sales, Marketing, and CRM, Satellite Developers Pvt. Ltd. (SDPL)

“Given the current market conditions and the inflationary pressures, the RBI’s decision was anticipated to guide the economy towards stability and maintain a secure financial environment. Rising property prices had already added to the difficulties for potential homebuyers. Nevertheless, the RBI’s decision not to implement another repo rate increase has offered significant relief to individuals interested in buying homes. Moreover, those looking to make their first home purchase often view it as a substantial investment, and the RBI’s action is expected to have a favorable impact on their decision-making process.”

Dr. Sachin Chopda – Managing Director, Pushpam Group
“We appreciate the RBI’s choice to maintain the status quo on key interest rates in light of the escalating inflation. Over the past few years, there has been a notable surge in real estate investments, primarily due to its ability to offer investors better returns on their capital and its growing appeal as an asset class when compared to alternative investment opportunities. This decision is likely to inspire potential homebuyers to still close in on their property investments in the upcoming festive season.”

Mr. Aakash Patel, Director, Atul Projects India Pvt Ltd.
“The decision by the RBI to maintain the status quo and keep the repo rate at 6.50 per cent has come at an opportune time. This will help in maintaining liquidity and control inflation in the economy. This decision will convince home buyers that it is the right time to go ahead and buy their long awaited dream home; given upcoming festivals like Dussehra and Diwali which will ignite home sales even further.”

Corporate Comm India (CCI Newswire)