RBI in status quomode; home loan rates still in single digits
RBI's decision to keep key repo rates unchanged is a welcome move which will benefit housing sector, said Anuj Puri, Chairman, Anarock Group
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Hyderabad: RBI's decision to keep key repo rates unchanged is a welcome move which will benefit housing sector, said Anuj Puri, Chairman, Anarock Group
"As was anticipated, the RBI has decided to keep the repo rates unchanged at 6.5 per cent. This gives some respite to prospective homebuyers looking to avail of home loans in the near future. The unchanged repo rate can help maintain the momentum in housing sales, which has so far been firing on all cylinders in 2023," he said.
As per Anarock Research, we saw housing sales in first quarter of 2023 scale new heights, breaching the one lakh mark at 1.14 lakh units across the top 7 cities, he said.
According to him, given the current unchanged rates, the outlook for those looking to buy their first home via a home loan soon remains favourable. Interest rates from most banks will continue in single digits. With top banks, they currently hover between 8.7 to 9.65 per cent. A future rate hike, if any, may push the rates into double digits. The persisting financial instabilities in advanced economies of the world may have repercussions in India, causing the RBI to take such a step to face these headwinds.
Dharmendra Raichura, VP Finance, Ashar Group, said the market expects that RBI will likely keep unchanged RERO rates throughout 2023.
“We are pleased that the RBI has decided to maintain REPO rates unchanged. Considering that inflation appears manageable, the Market expects that RBI will likely keep unchanged RERO rates throughout 2023. Recently we saw GDP numbers come out, which says Q4 GDP growth of 6.1% beats estimates, and overall FY23 growth at 7.2%. These factors indicate that the Indian economy is stable and doing well," he said.
Homebuyers would be much relieved by this decision because the market has been steady following a period of instability. There is a growing demand for real estate, and buyers want to buy properties from reputable developers. We are optimistic that RBI will consider reducing the REPO rates in the upcoming monetary policy, which will great relieve the Home buyers and the Real estate industry, he said.
