For the second consecutive time, the RBI has pressed a pause button in its credit policy, keeping the repo rate unchanged at 6.5%. To gauge how it will impact housing demand, Torbit Realty presents the views from a cross section of the real estate industry.
Boman Irani, President, Credai National
With RBI’s decision to keep repo rates unchanged, we expect both housing supply and demand to sustain its ongoing momentum. Going forward there is a scope for reduction in repo rate in view of inflation being at an 18-month low level.
Ashwinder R Singh, CEO- Residential, Bhartiya Urban
The RBI’s decision to keep interest rates stable is likely to boost demand for homes, especially as the sector was facing headwinds in the recent months due to rising interest rates.
Shishir Baijal, Chairman & MD, Knight Frank India
In the backdrop of real estate demand for housing and commercial segments remaining strong, the status quo in repo rates will facilitate positive decision making for home buyers.
Amit Goel, MD, India Sotheby’s International Realty
The pause in rate hike reflects cautious approach in light of the persistent inflationary pressures and their potential impact on domestic consumption growth. It will instil a sense of optimism among borrowers, boosting housing sales momentum.
Anuj Puri, Chairman, Anarock
The unchanged repo rate can help maintain the momentum in housing sales which have so far been firing on all cylinders in 2023. The outlook for those looking to buy their first home via home loan remains favourable unless persisting global financial instability causes disruption
Manoj Gaur, President, Credai NCR & CMD Gaurs Group.
The repo rate status quo will surely be a relief for the real estate sector which has been seeing a great upturnover the past 6 months and would help maintain it. However, we look forward to lower repo rates in the months to come.
Y Viswanatha Gowda, MD & CEO LIC Housing Finance
We expect the present RBI stance of status quo to continue for a few more quarters. For home buyers, a stable interest rate is an encouraging trend. Looking at the lead indicators, it shows optimism and demand revival.
Pradeep Aggarwal, Founder & Chairman, Signature Global
RBI’s decision to hold repo rates demonstrates its positive intent towards supporting the housing market and benefiting home buyers. As long as home loan rates are around 9%, they are unlikely to have any adverse impact on housing demand.
Piyush Bothra, Co-founder & CFO Square Yards
Repo rate status quo for second time in a row affirms the view that interest rates will only go downwards. This is a big positive for the home buyers. We are at the beginning of a multi-year real estate bull market, buoyed by affordability and moderate to low interest rates.
Atul Bansal, Director Finance, Omaxe
RBI’s avoidance of rate hike is crucial because otherwise it would have resulted in lending rates becoming unviable, potentially undermining the positive sentiment among home buyers.
Vimal Nadar, Head, Research, Colliers India
It is a significant breather for lenders, developers and home buyers. For the first time home buyers will be better placed to make their home purchase decision in a stable lending rate regime.
V Swaminathan, Executive Chairman, Andromeda & Apnapaisa.com
Keeping policy rates unchanged is a positive development for borrowers. In view of strengthening macro-economic fundamentals if the situation persists or improves further, we can anticipate a potential rate cut in the next monetary policy review.
Sanchit Bhutani, MD, Group 108
RBI’s move to keep repo rates intact ensures stability and continuity, creating a favourable environment for investment, encouraging long term investments.
Ankit Kansal, MD, 360 Realtors
Though the economy, businesses and financial institutions look upbeat, downside risks still prevail from volatility in international financial markets. In the light of this, RBI’s decision to hold repo rate is a good step for the housing sector.
1
2
3
4
5
6