Unchanged repo rates to ignite housing demand in festive season

Given the current market conditions and the inflationary pressures, the RBI's decision was anticipated to guide the economy towards stability and maintain a secure financial environment. Rising property prices had already added to the difficulties for potential homebuyers

The RBI’s decision to keep the repo rate unchanged at 6.50 per cent has been in line with the government’s stance of keeping inflation in check while maintaining liquidity in the economy. This pause in the repo rate has come at an apt time given the ongoing festive season which will improve market sentiments and drive housing demand even further.

This is the fourth consecutive meeting that the MPC decided to maintain the status quo on the repo rate. The real estate developers have welcomed the RBI's decision to maintain the existing policy rates, highlighting that this move is poised to boost housing demand in the forthcoming festive season.

Talking to Bizz Buzz, Pritam Chivukula – Vice President, CREDAI-MCHI and Co-Founder & Director, Tridhaatu Realty, says, “The government has been supportive to the real estate sector with constructive industry policies.”

Construction activity has been buoyant on the back of timely government intervention and positive policy measures keeping the economy strong against global headwinds. Maintaining status quo at 6.5 per cent has been a good decision taken by RBI. Given the ongoing festive season, this decision will encourage prospective home buyers to come forward and buy their desired home.

Prashant Khandelwal, CEO – Agami, says, “As in the past, we look forward to continued support from the government with policies that will sustain growth of the sector, going forward.” Given the current market conditions and the inflationary pressures, the RBI's decision was anticipated to guide the economy towards stability and maintain a secure financial environment. Rising property prices had already added to the difficulties for potential homebuyers.

Himanshu Jain, VP – Of sales, Marketing, and CRM, Satellite Developers Pvt Ltd (SDPL) says, “Nevertheless, the RBI's decision not to implement another repo rate increase has offered significant relief to individuals interested in buying homes.” Moreover, those looking to make their first home purchase often view it as a substantial investment, and the RBI's action is expected to have a favorable impact on their decision-making process.

Dr Sachin Chopda – Managing Director, Pushpam Group, says, “We appreciate the RBI's choice to maintain the status quo on key interest rates in light of the escalating inflation. Over the past few years, there has been a notable surge in real estate investments, primarily due to its ability to offer investors better returns on their capital and its growing appeal as an asset class when compared to alternative investment opportunities.”

This decision is likely to inspire potential homebuyers to still close in on their property investments in the upcoming festive season.

The RBI has effectively managed to keep inflation rates within acceptable boundaries. RBI’s choice to uphold the current stance for the fourth consecutive occasion was a predictable decision aimed at prioritising stability.

Vivek Mohanani – MD & CEO, Ekta World says “Further increase in policy rates could potentially have a substantial impact on the outlook of prospective homebuyers and their purchasing capacity. Consequently, this could have also restrained the demand which has been on the rise in the past few months.”

It would be more preferable to witness a forthcoming decrease in interest rates, which could bolster overall market confidence and establish a more attractive environment for potential homebuyers.