Aptly and as expected, the RBI has kept the repo rates unchanged at 6.5%. The Indian economy is going strong and inflation is reined in, though it has yet to come within the threshold of RBI’s target.
The decision to maintain status quo will keep the ongoing residential real estate sales momentum on course and unimpeded. Aspiring homebuyers eyeing a purchase will proceed with confidence.
Housing sales across the top 7 cities have been phenomenal in the last few quarters, even though prices are rising steadily.
As per ANAROCK Research, we saw total housing sales of over 1.30 lakh units across the top 7 cities in Q1 2024 - the highest quarterly sales in the last decade.
Average residential prices across these cities have seen a significant jump in the last one year – ranging between 10-32% in Q1 2024 when compared to Q1 2023. Thus, the breather which RBI's unchanged repo rate will provide to home loan borrowers is apt and welcome.
Sharing his views on this, Aman Sarin, Director & Chief Executive Officer, Anant Raj Limited says, “We appreciate the RBI's decision to keep the repo rate unchanged at 6.5%, marking the seventh consecutive instance of maintaining stability in the rate. Stable interest rates are beneficial for the economy and are conducive to positive consumer sentiments. Home loan borrowers are finding relief due to the steady interest rates, enabling them to proceed with their borrowing plans confidently. This will also positively impact the Housing Sector and its expansion due to steady Cost”
Articulating the views on unchanged Repo rate, Deepak Kapoor, Director at Gulshan Group, the decision of RBI is good news for the realty sector of the nation. "Even though we would have wanted it to come down by at least 25 basis points, this would have signaled greater confidence in the Indian economy’s growth trajectory and further boosted the sector. Since February 2023, when the RBI first pressed the pause button, the realty sector has witnessed a record jump in sales in the premium and luxury segments. New launches have phenomenally increased, and unsold inventory has drastically decreased. The decision by RBI to keep the rate at 6.50% has cheered the sector”, he states.
Likewise, Dhruv Agarwala, Group CEO at Housing.com & PropTiger.com states that, among the increasing growth numbers & regulating inflation predicts, it turns extremely fruitful for Indian Real estate sector. On sharing his thoughts, Agarwala says, “Not only would this reflect in stability in housing loans but also in property prices since the cost of borrowing would remain stable for developers as well. This is going to work tremendously well for the economy in general and the sector in particular.”
Similarly, S K Narvar, Group Chairman, Trident Realty embarks, “This move is set to benefit potential homebuyers by ensuring affordability and sustaining momentum in the housing market. With consumer demand driving the real estate sector, especially in luxury housing, the decision to maintain the repo rate status quo supports feasible macroeconomic indicators and encourages new homebuyers to invest in property. As India's economy continues to grow, the real estate sector is poised to play a significant role, making the current repo rate policy a crucial factor in fuelling positive demand and contributing to the country's economic expansion”.
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