The Reserve Bank of India (RBI) has given relief to the boom in the real estate sector since last year in the second quarter as well. RBI has announced not to increase the repo rate in the second quarter of this financial year after reviewing the monetary policy. RBI has announced to keep the repo rate constant at 6.50 percent. This step of the RBI has given relief to the common man to the real estate sector.
Manoj Gaurs, President CREDAI NCR and CMD Gaurs Group said, “The decision by RBI to maintain the status quo on the repo rate is welcome news. This would surely be a relief for the real estate sector which is seeing a great upturn in the last 5-6 months. This upswing would surely be maintained with this measure. However, we look forward to lowering the repo rate in the months to come which will boost the real estate sector and as well as the country’s economy.”
Nayan Raheja, Raheja Developers said, “In the luxury realty sphere, where our group has significant exposure, the present interest rate has not caused a dent in the overall housing sale. Having said that, I welcome the RBI’s decision to maintain the status quo on interest rates. The transformation we are looking at is the result of keeping the interest rate at its highest in the last few years. For one, it should propel GDP growth and control inflation, ultimately benefiting the country and the real estate sector.”
Atul Banshal, Director Finance, Omaxe Ltd, “RBI’s decision to maintain the repo rate again has brought significant relief to the industry as a whole, and especially to homebuyers. Avoiding another rate hike is crucial because it would have resulted in lending rates reaching an unviable high, potentially undermining the positive sentiment among buyers that the housing sector has experienced over the past year.”
Rajesh K Saraf, Managing Director Axiom Landbase said, “We must understand that real estate does not work in isolation and is dependent on the success of all other sectors and companies. The RBI’s stance will help strengthen the economy and provide a favorable environment for the real estate sector.”
Kushagr Ansal, Director Ansal Housing said, “This move for the second time is immensely encouraging for the real estate sectors, as it currently alleviates concerns about an additional financial burden on developers and buyers.”
According to Ashwani Kumar, Pyramid Infratech, “The Reserve Bank of India (RBI) has made a favorable choice by opting not to raise the repo rate for the second time. This decision is commendable as it will strengthen the interest of homebuyers in the affordable and mid-segment categories, despite the ongoing strong demand. While the previous rate hikes have not had a negative impact on demand, today’s decision will provide an additional boost to the real estate sector, which serves as a crucial driver of economic growth.”
As per Ankit Kansal, Managing Director,360 Realtors, “RBI has kept the repo rate unchanged on a strong footing with a 7% expected GDP growth rate in 2023. Business activities are rising and financial institutions look upbeat. However, the downside risk emanating from volatility in international financial markets and rising geopolitical tensions can’t be completely negated. Amidst such a contradictory environment it is a good step to further analyze and evaluate the situation rather than fastening things.”
Rajjath Goel, Managing Director, MRG Group said, “The decision not to increase the repo rate after six straight hikes has had an embalming effect on the real estate sector. Even if the RBI continues to maintain the repo rate at the present 6.5%, it will spur the sector’s growth. However, inflation at 5.1% is still a cause of concern as it is reducing the disposable income at hand and affecting investments in real estate. We hope RBI’s efforts will bring it down to 4%.”
Speaking on the same, Mr. LC Mittal, Director Motia Group said, “The decision to keep repo rates stable benefits markets through keeping rate stability and a neutral mindsets. But there are still some problems within the real estate sector that must be solved. As the sector makes rapid progress in meeting demand with high-quality supply, the value of real estate as an asset will continue to rise and strengthen over time.”
Sanjay Sharma, Director, SKA Group said. ”Repo rates were left unchanged; the policy is extremely good for the markets by keeping rates constant and maintaining an accommodative stance. However, there are still some challenges in the real estate market that must be addressed. The value of the real estate as an asset will continue to grow and strengthen with time as the sector is moving rapidly towards meeting the demand with quality supply.”
Sanchit Bhutani, Managing Director, Group 108 said, “The RBI’s decision to maintain unchanged repo rates is a boon for the real estate sector. The move ensures stability and continuity, attracting investors and encouraging long-term investments. Keeping the repo rates steady means that the cost of borrowing for homebuyers and developers remains unchanged, thus creating a favourable environment for investments in the real estate sector. This decision provides assurance to potential investors and promotes growth in the industry as the interest rates do not witness further hikes.”
Vikas Bhasin, Managing Director, Saya Group said, “We welcome this decision by RBI. The repo rate at 6.5% is already at its highest in the last four years, the EMIs are high, and the developers still have to pay high-interest rates on the project finances. Still, the fact that the RBI decided to keep it unchanged has signalled a change in outlook. It will boost investors’ confidence and propel the sector’s growth, and given the NCR’s optimistic real estate scenario, boost investment in premium and luxury projects.”
Radheecka Rakesh Garg, Director, Rajdarbar Realty said, “This is good news. RBI’s decision to leave the repo rate unchanged, along with the projected GDP growth rate of 6.5% in FY, as estimated by the RBI, will foster residential and commercial development in the country. However, the inflation, expected to hover around 5% in FY24, is a cause for concern. Even though the impact on the premium and luxury segments will be negligible, it will affect the price-sensitive affordable segment, especially in tier 2 and 3 cities.”
Sudhanshu Rai, Director, Ocean Infraheights said, “Repo rate stability by the RBI is a calculated strategy to strike a balance between inflation and growth. Rate stability helps the real estate industry while guaranteeing that inflation is kept under control. This strategy helps maintain affordability, which is essential for a long-term real estate market and would prevent an unexpected price increase. The RBI’s decision favours the real estate industry by fostering growth, fostering a positive investment environment, and preserving a balance between inflation and affordability.”
Pankaj Jain, Director, KW Group said, “RBI’s decision not to increase the repo rate is a good move because stability in the interest rate will boost the market sentiments. However, lowering the rate after 5 to 6 consecutive increases would have been ideal for the sector’s growth. The decision to maintain the rates would allow the buyers to invest in real estate without any further hikes in loan interest rates.”
Ajendra Singh, VP- Sales and Marketing Spectrum Metro, “The RBI’s decision to steady repo rates is a strategic move to balance growth and inflation. Keeping the rates unchanged stimulates the real estate sector while ensuring inflation remains in check. This approach would prevent a sudden price surge and helps maintain affordability, which is crucial for a sustainable real estate market. The decision by the RBI benefits the real estate sector by providing a favourable investment environment, encouraging growth, and maintaining a balance between inflation and affordability.”
Ashwinder R Singh, CEO Residential, Bhartiya Urban said, “The Reserve Bank of India (RBI) kept the repo rate unchanged at 6.5%, a decision that is likely to come as a relief to the real estate sector. The sector was facing slight headwinds in recent months due to rising interest rates, which had made it more expensive for homebuyers to borrow money. The RBI’s decision to keep interest rates stable is likely to boost demand for homes. The decision will help to support economic growth. A strong real estate sector can help to drive economic growth by creating jobs and stimulating investment. By keeping interest rates stable, the RBI is helping to create an environment that is conducive to economic growth.”
