Views of Dr Niranjan Hiranandani -National Vice Chairman- NAREDCO on RBI’s Repo Rate

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New Delhi, February 13, 2023: The Economic survey evidently indicated the upward growth trajectory of the Indian economy, corroborated by RBI  pegging the FY23-24 GDP growth rate at 6.4%. Indian economic resilience is reflected with improved capex, enhanced capacity utilization, improved urban and rural consumption, augmented investments and jobs creation. The geo-political tumultuous, recession signals, and weakening of  western economies will reorient the growth scale towards the booming economy of India. This  phenomenon will continue to draw high global traction which will fuel the demand across the real estate asset classes.

The pricing index of the affordable housing segment will have detrimental cascading impact due to projected sticky core inflationary trend. Though surplus liquidity will power credit growth in the real estate sector, demand economics may be challenged  in the affordable house segment – which is the broad spectrum of the consumption pyramid. The outrageous hike of 250 basis point since May 2021, needs to be warranted before it turns negative for the ascending Indian economic  growth curve. The impact of home loan interest rate hike will be highly deterrent in the affordable housing segment as it will impact the price sensitive homebuyers and fatigue the supply of the developers. The luxury and mid housing segment players will remain cautious with a bit longer sales cycle.

Corporate Comm India (CCI Newswire)