Real estate experts anticipate RBI's decision to maintain repo rates
ANAROCK Research says, housing sales in the top seven cities exceeded 1.30 lakh units in Q1'24
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Real estate developers and experts predict that the demand for housing will stay strong, and the monthly payments for home loans will remain the same for now as the Reserve Bank of India (RBI) has chosen to keep the repo rate steady at 6.5 percent.
During the RBI's Monetary Policy Committee (MPC) meeting on April 5, they opted to maintain the repo rate without any changes for the seventh consecutive time. There is a huge positive impact of RBI repo rate decision on housing market. This decision is welcomed by real estate experts who believe it will support the ongoing housing boom and encourage prospective homebuyers to proceed with confidence.
Anuj Puri, Chairman of ANAROCK Group, noted that the decision to maintain the current repo rate was expected. He expressed that this decision will sustain the current momentum in residential real estate sales, allowing aspiring homebuyers to make purchases with assurance. Housing sales in the top seven cities have been exceptional in recent quarters, despite steadily increasing prices. The unchanged repo rate offers relief to home loan borrowers and is well-received, reflecting RBI monetary policy on real estate sector.
According to ANAROCK Research, the top seven cities witnessed record-breaking housing sales of over 1.30 lakh units in Q1 2024, the highest in the last ten years. However, average residential prices in these cities have seen notable increases over the past year, ranging between 10 percent and 32 percent compared to Q1 2023.
Manju Yagnik, senior vice president of NAREDCO Maharashtra, emphasized the importance of the RBI's decision in maintaining stable home loan rates to support the expanding housing market and boost consumer confidence. This decision provides significant relief to homeowners facing rising housing costs and sets a foundation for long-term stability and growth in the housing sector. These are the Effects of unchanged repo rates on housing sector
Pradeep Aggarwal, Chairman and Founder of Signature Global (India) Limited, highlighted the positive impact of a stable repo rate on average homebuyers, ensuring confidence in taking home loans. This is how RBI's repo rate decision affects homebuyers and property investors. The stability contributes to the growth of the real estate sector, which is vital for India's GDP and future prospects.
Anshuman Magazine, CEO and Chairman of CBRE India, South-East Asia, Middle East, and Africa, echoed the sentiment, emphasizing that stable borrowing costs make purchasing a home more accessible and support price stability amid inflationary pressures.
