Finance

Uninterrupted RBI Policy Rates Fuel Housing Market Growth: Insights from Developers

By NewsVoir

The Reserve Bank of India (RBI) decided to keep the repo rate steady, as seen in its recent choice to maintain it at 6.5% for the fifth time, which indicates a commitment to economic stability. This deliberate decision has positive effects across various sectors, particularly impacting the real estate sector. A stable repo rate has several beneficial outcomes as it contributes to a more predictable economic environment, supporting long-term planning for businesses and investors.

Reserve bank of india

The RBIs measures to balance the repo rate and control inflation reflect its aim to balance economic growth while preventing excessive inflation. In the real estate sector, a stable repo rate promotes affordability for homebuyers, sustaining demand and boosting investor confidence. The recent decision by the RBI to keep the repo rate at 6.5% aligns with its broader goal of fostering sustainable economic growth and managing inflation, highlighting the importance of this measured approach for the real estate industry and the overall economy.

Mr. Sachin Gawri, Founder and CEO, Rise Infraventures Limited

The real estate industry will benefit from the RBIs decision to maintain repo rates at 6.5%. The decreased fluctuation in loan interest rates is anticipated to increase the trust of developers and purchasers, opening the door for steady long-term growth. Reduced lending rates speed up the development of residential and commercial real estate developments. Interest rate stability is expected to encourage investments among both first-time buyers and middle-class consumers. In the real estate market context, this stability is particularly beneficial, as it helps maintain affordability for homebuyers, sustains demand and balances the need for growth while controlling inflation.

Mr. Pankaj Kumar Jain, Director, KW Group and Vice President CREDAI Ghaziabad

RBI has kept the repo rate unchanged citing global economy is showing signs of slowdown. The RBI decision to ensure inflation progresses along the target of 4% and CPI inflation projections to be kept at 5.4% has prompt RBI to keep the rate unchanged. The Real Estate Sector always supports for a lower interest rate for the buyers as the reduction of the interest reduces the overall loan which is important for affordable sector and mid income buyer. We welcome the move as the rates are not increased but looking for a reduction in near future.

A consistent repo rate at 6.5% provides a stable financial environment for the real estate sector. This steady rate encourages borrowing at predictable costs, fostering investor confidence. With a reliable financial landscape, developers can plan strategically, homebuyers benefit from sustained affordability, and overall, it contributes to a conducive atmosphere for continued growth and performance in the real estate market,” says Mr. Mukul Bansal, MD, Motiaz.

Mr. Deepak Kapoor, Director, Gulshan Group

RBI’s decision to keep the repo rates stable at 6.50% is in favour of the real estate sector and resonates with both developers’ and buyers’ sentiments, as this would increase investments in the sector. The stable interest rate would allow buyers to invest in their desired projects without burning a hole in their pockets. This would maintain the upward trajectory of the sector, also encouraging buyers who have been inclining from mid-segment projects towards high-end projects. With the festive season already being a boon for real estate, the stable repo rates have marked the end of the year quite well.

The RBIs decision to keep the repo rate at 6.5% bodes well for the Indian housing and home loans sector. With interest rates stable, home buyers can enjoy a favorable environment for securing loans. The steady stance fosters confidence in the markets stability. While maintaining an optimistic outlook, potential home buyers can take advantage of this conducive lending environment, anticipating a positive impact on affordability and accessibility within the real estate market. Mr. Ashwinder R Singh, CEO, Residential – Bhartiya Urban

Mr. Vikas Bhasin, Chairman and Managing Director, Saya Group

The RBIs stance instils hope in the sector, suggesting that good times are back again. The decision to keep the repo rate unchanged indicates macro and micro economic stability. It will catalyse year-end housing sales and contribute substantially to the sectors growth in 2024. This decision presents the picture of the countrys resilient economy. It is expected to stimulate growth, favourably for the premium housing and commercial segments.

Continuing its status quo maintaining streak, the RBIs decision to keep the repo rate at 6.5% is a welcome step. With GDP estimated to grow at 7% in FY2024, the Sensex hitting new highs, prices of crude oil under control and inflation tapering down, we expect the real estate sector to continue with the stellar performance it had exhibited in 2023 well into the coming year. The decision indicates stability, which is much needed for robust realty growth,” says Mr. Prateek Mittal, ED, Sushma Group.

The Reserve Bank of Indias choice to maintain the existing interest rates signifies a positive step towards easing the financial strain on potential homebuyers. The notable surge in monthly EMIs in recent months has posed substantial challenges for individuals in the middle and lower-income brackets aspiring to own a home. By upholding a stable interest rate environment, there is an optimistic expectation that these prospective,“says Mr Tejpreet Singh, MD Gillco Group.

Mr. Ajayendra Singh, Vice president (Sales and Marketing), Spectrum Metro

The Reserve Bank of Indias decision to maintain the status quo on the repo rate is an encouraging announcement. It reflects optimism in Indias economic growth trajectory. It will instil confidence among real estate developers and buyers and foster stability with the assurance that interest rates will remain low. The move will provide a significant boost to the real estate market in the coming times.

Disclaimer: The above press release has been provided by NewsVoir. GrowNxtDigital will not be responsible in any way for the content of the same.

Akash Shrivastav

My name is Akash Shrivastav, and I am a Blogger. I have 8 years of experience in blogging for Finance, Business, Investment, Stock Market, Cryptocurreny and more. Through my writing, I aim to provide readers with insightful and informative content.