The Reserve Bank of India announced the latest update on Repo rates and mentioned that it would remain stable at 6.5%. After consecutive hikes leaving multiple industries in a fix, this is the third time in a row that the authorities have decided to keep the rates unchanged. This has brought a positive outlook among real estate developers and prospective buyers from every walk of life, who could invest in real estate without any major concern about the ever-increasing loan interest rates. The move is a precursor to the festive spirits as real estate looks forward to a massive boom in terms of investment in the upcoming festive season.
RBI Repo rate
Mr. Sanchit Bhutani, Managing Director, Group108, “The real estate sector has received a boon as the RBI chooses to retain repo rates. Stability and continuity attract investors, assuring a profitable environment for long-term investments. Unchanged repo rates maintain consistent borrowing costs for homebuyers and developers, cultivating a favourable atmosphere for real estate investment. This decision will surely instil confidence among potential investors and enhance the sector’s growth as interest rates remain steady.“
Mr. Rajjath Goel, Managing Director, MRG Group, “RBIs strategic hold on repo rates balances growth and inflation for the real estate sector. Unchanging rates at 6.5% would vitalise the sector, curbing sudden price hikes and preserving affordability, a cornerstone of sustainability. This decision shall nurture investment, enhance growth, and maintain a harmonious equilibrium between inflation and viability. It would foster trust among buyers and developers, enabling market growth and consistent expansion.“
Mr. Vikas Bhasin, CMD, Saya Group, “We believe that the unaltered repo rate of 6.5% is a significant signal of changing outlook by RBI. Despite the challenges posed by high EMIs and interest rates, the decision shall bolster investor confidence and drive sector growth. The optimistic real estate scenario in the NCR is expected to fuel investments in upscale projects. Middle-income groups’ confidence in real estate investment shall also boost as interest rates remain stable.”
Mr. Ashwinder R Singh, CEO, Residential, Bhartiya Urban, “The unwavering commitment of the RBI to maintaining the repo rates at 6.5% underscores its resolute support for a stable housing market. This strategic decision not only enables buyers to invest in real estate with confidence, free from concerns about abrupt interest rate surges but also fosters an investor-friendly climate, promoting growth in both residential and commercial projects. Such a deliberate and confident choice reflects optimism in Indias economic trajectory, poised to generate positive impacts on the real estate sector.”
Mr. Salil Kumar, Director, CRC Group, “RBIs decision to keep the repo rates steady at 6.5% welcomes positive developments in the real estate sector. Reduced uncertainty and volatility would promote confidence among buyers and developers, promoting sustained expansion. Lower borrowing costs drive progress in both residential and commercial real estate projects, speeding construction activity and job creation. The stability in interest rates shall increase investment across diverse segments, from first-time buyers to middle-income strata.”
Mr. Deepak Kapoor, Director, Gulshan Group, “The present decision by the RBI to maintain the status quo on the interest rate augurs well for the luxury housing sector. By and large, the luxury real estate domain is less affected by high-interest rates than affordable housing. Still, any further hike would have brought the rates near a psychological breaking point. The decision reduces the element of uncertainty as far as economic policies are concerned. It presents a picture of the country’s resilient economy. We also expect it to spur growth, which again will augur well for luxury realty.“
Mr. Prateek Mittal, Executive Director, Sushma Group, “After six straight increases, the RBI’s decision to press the pause button straightaway for two consecutive times is a welcome move, especially against the backdrop of signs of inflation cooling down and the country promising growth prospects. From developers to homebuyers and financial institutions, every stakeholder in the real estate sector stands to gain as the decision fosters stability and assures that interest rates will remain low. This move will boost real estate across the nation.”
Mr. Pankaj Kumar Jain, MD, KW Group, “RBI’s decision to maintain the repo rate showcases optimism in India’s economic growth trajectory. This decision will favourably influence both the residential and commercial sectors, including retail. However, the present rep is already at its four-year high. Therefore, our earnest appeal to RBI will be to reduce the repo rate in its next MPC meeting. This environment fosters real estate investment and growth, bolstered by the assurance of no imminent interest rate hikes. Steady rates sustain the equilibrium, aiding both buyers and developers by preserving borrowing costs.”
Mr Shailender Sharma, MD, Renowned Group, “A status quo was expected from RBI because this is the trend which RBI if following post increasing it 3 to 4 times earlier however a reduction of rates would be better for the sector. We are expecting a lowering of rate in the 3rd quarter which is usually a festival season and has a higher demand for real estate products.“
Mr. Ajendra Singh, VP, Sales and Marketing, Spectrum, “RBIs decision to halt hikes and maintain the repo rate at 6.5% is commendable. It has provided solace to buyers with stable interest rates. The decision ensures a flourishing real estate sector and demonstrates a vigilant approach in the face of inflationary trends. This constancy promises stability and invites long-term investors, upholding the expense of borrowing for developers and purchasers. With lowered borrowing costs, both residential and commercial projects are poised to flourish.”