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Status quo to help sustain growth momentum in real estate
In a steadfast move reflective of its commitment to sustaining economic stability, the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) has opted to maintain the policy repo rate at 6.5% for the ninth consecutive time. This decision, which was reached by a 4:2 majority, underscores the central bank’s cautious approach amidst global economic uncertainties. This policy direction is expected to have a significant impact on the real estate sector, particularly in terms of borrowing costs and investment sentiments, as developers and homebuyers navigate the current interest rate environment. Here is what real estate experts have to say on the announcement.
Mr. Prashant Sharma, President, NAREDCO Maharashtra
“We welcome the RBI’s decision to keep the policy repo rate unchanged at 6.5%. This decision reflects a cautious yet stable approach to monetary policy amidst global economic uncertainties. For the real estate sector, the steady interest rates are a positive signal, providing a conducive environment for homebuyers and investors alike. It is imperative to maintain this stability to continue fostering consumer confidence and ensuring the sustained growth of the sector. We hope that this decision will further stimulate demand in the housing market, particularly in the affordable and mid-segment categories, which are crucial for the overall development of the real estate industry.”
Mr. Pritam Chivukula, Vice President, CREDAI-MCHI and Co-Founder & Director, Tridhaatu Realty
“We welcome the RBI’s decision to keep the policy repo rate unchanged at 6.5%, which reflects a cautious and balanced approach. The real estate sector, particularly in metro cities like Mumbai, has been experiencing a steady revival, and the current rate stability will help sustain this momentum. Homebuyers will continue to benefit from the favorable lending rates, encouraging more investments in the housing market. However, we urge the government to consider further supportive measures that can enhance liquidity and provide long-term stability to the sector. The focus should be on boosting consumer sentiment, which will ultimately drive growth in real estate and allied industries.”
Mr. Rajeev Ranjan, Co-Founder & CEO, The Mentors Real Estate Advisory Pvt Ltd
“The decision by the Monetary Policy Committee to keep the policy repo rate unchanged at 6.5% is a balanced approach that reflects the current economic landscape. In the real estate sector, stability in interest rates is crucial for maintaining buyer confidence and ensuring steady demand, particularly in the housing segment. While the unchanged repo rate continues to offer a favorable borrowing environment, it also signals the RBI’s intent to monitor inflation closely without disrupting growth. We anticipate that this stance will help sustain the momentum in the real estate market, encouraging more homebuyers to take advantage of the existing financial conditions.”
Ms. Shraddha Kedia-Agarwal, Director, Transcon Developers
“We commend the RBI’s decision to maintain the policy repo rate at 6.5%. The real estate sector has shown resilience amidst fluctuating economic conditions, and the stability in interest rates is a positive sign for both developers and homebuyers. This decision will help maintain the momentum in the housing market, encouraging potential buyers to invest in their dream homes with confidence. We remain optimistic that the steady rates will continue to bolster the real estate sector and support the overall economic recovery.”
Mr. Rohan Khatau – Director, CCI Projects
“RBI’s decision to maintain the policy rate is a prudent step, as we are able to control inflationary trends. The focus on controlling inflation to support growth is commendable as it will foster a favorable environment for the real estate sector, enabling growth and stability. We are optimistic that these measures will enhance consumer confidence and encourage home ownership, laying a strong foundation for future progress.”
Mr. Samyak Jain, Director, Siddha Group
“We welcome the RBI’s decision to maintain the policy repo rate at 6.5%, which reflects a positive approach toward sustaining economic growth while keeping inflationary pressures in check. The real estate sector has witnessed a steady demand, and this move by the RBI provides continued stability, allowing homebuyers to benefit from favorable interest rates. As we move forward, we hope this stability will encourage more consumers to invest in real estate, further driving growth in the sector.”
Mr. Himanshu Jain, VP – Sales, Marketing and CRM, Satellite Developers Private Limited (SDPL)
“We welcome the RBI’s decision to maintain the key policy rate at 6.5% which aligns with our economic growth policies. The focus on controlling inflation to stimulate growth will undoubtedly spur housing demand, benefiting homebuyers and developers alike. We are optimistic that these policies will further enhance market confidence and drive sustained growth in the real estate industry.”
