The Reserve Bank of India (RBI) has decided to keep its key policy rates unchanged, signaling a period of stability and growth for the real estate sector. This decision, announced after the latest monetary policy committee meeting, comes as a relief to both developers and homebuyers, who were worried about potential rate hikes amidst economic fluctuations. Industry leaders are optimistic that this move will bolster the housing market and benefit prospective home buyers.
Mr. Pritam Chivukula, Vice President of CREDAI-MCHI and Co-Founder & Director of Tridhaatu Realty, commended the RBI’s approach to balancing inflation control with growth support. “We acknowledge the housing sector’s success during the past few quarters and praise the recent government initiatives for boosting the real estate market. The RBI’s decision is a positive signal for the real estate sector. It will bolster consumer confidence and encourage investment in property,” he said.
The RBI’s steady stance is anticipated to encourage investment in real estate, as borrowing costs for consumers remain unaffected. This is expected to sustain the momentum in home purchases that has been observed over the past few quarters.
Welcoming the RBI’s decision, Mr. Aakash Patel, Director of Atul Projects India Pvt Ltd. said, “We believe that maintaining the repo rate will help control inflation and maintain liquidity, encouraging prospective home buyers to invest in their dream homes, thereby sustaining the positive trend in home sales. It provides a much-needed cushion for the real estate sector, potentially boosting residential as well as commercial property markets.”
Mr. Samyak Jain, Director of Siddha Group, praised the RBI for its role in controlling inflation and ensuring economic liquidity. “The real estate market has witnessed a robust performance, driven by increasing demand for homeownership and rising income levels. We are optimistic about a surge in demand in the coming months and anticipate this positive trajectory to continue in this year as well,” he said.
Homebuyers stand to benefit from this decision as it implies stable loan interest rates. The unchanged policy rates mean that the cost of borrowing will not increase, making it an opportune time for potential homeowners to secure loans at attractive rates.
Mr. Himanshu Jain, VP of Sales, Marketing, and CRM at Satellite Developers Private Limited (SDPL), expressed his approval of the RBI’s decision, noting its impact on controlling inflation and maintaining economic liquidity. He observed a peak in the festive and the post festive season sales and expects the RBI’s decision to further motivate potential buyers encouraging them to pursue homeownership.
Lastly, Mr. Rohan Khatau, Director of CCI Projects, lauded the RBI’s prudent decision, which aligns with the current positive market sentiment and high home sales. He anticipates that the decision to hold the repo rate will make more funds available to potential home buyers. “This is a win-win for both builders and buyers. For builders, it means more liquidity and lower financing costs. For buyers, it ensures that home loans remain affordable,” he said.
While this move by the RBI is welcomed by the real estate sector, experts advise cautious optimism, keeping an eye on global economic trends and internal fiscal policies. The sector’s growth is contingent on a variety of factors, including overall economic stability and consumer sentiment.
The RBI’s decision to keep the key policy rates unchanged is a significant development for the real estate sector, fostering an environment conducive to growth and investment. As the sector navigates through the times ahead, the role of policy stability cannot be overstated in driving its success.
Overall, industry leaders are confident that the RBI’s decision will continue to foster a conducive environment for homebuyers, sustaining the momentum in the real estate sector.