The Reserve Bank of India (RBI) declared that the repo rate, which remains at 6.5% from the most recent review meeting, has not changed for the first time in the previous 12 months. The RBI has kept the repo rate at its current level. The real estate industry has praised the RBIs shift to a more accommodating posture as a “commendable” action. In the face of rising house loan mortgage rates and property prices, investors who had placed property investments on the back burner would perceive a glimmer of hope that would spur them to action. Lets examine each real estate experts response to the RBI statement individually.
RBI Repo Rate
Rajesh K Saraf, MD, Axiom Landbase, said, “We welcome the decision taken by the RBI to halt raising the repo rate again. This decision is a landmark action considering the steeply high home loan mortgage rates, which have become a cause of ire for homebuyers and real estate investors. This is a huge institutional support to revive housing demand and motivate homebuyers to invest in property markets.”
Mr. Pankaj Kumar Jain, Director, KW Group
The RBI policy stance depicts a smooth transition from a continuous elevation to the maintenance of repo rates which will boost growth in the realty sector. It is a truly commendable move by RBI and came about in time. Through its successive efforts, the RBI first decided to increase benchmark lending rates to contract inflation pinch-points. I hope that the RBI’s move contributes to bringing the real estate sector back on track and doubling investments.
Mr. Sanchit Bhutani, Managing Director, Grandthum
Contrary to the majoritarian view expecting a 25 bps hike yet again, the RBI took a different policy stand and did not raise the repo rate. I would like to thank RBI for changing its orientation and making a decision that would favour real estate growth. The conjunction of increasing home loan mortgage schemes and repo rate surges had caused property dearness to reach staggering levels. It needs some price correction to bring investors and buyers to the markets. Though the Central Bank described its move as a pause and not a pivot, this decision can act as a catalyst for a much-needed change that would boost real estate investment sentiments.
Mr. Anand Shukla, Managing Director, Ocean Infraheights Pvt. Ltd.
The RBI made a step that is much appreciated since it will allow purchasers to invest in the sector without worrying about excessive loan rates. Since the market in Tier II and Tier III cities are price-sensitive, the RBIs decision might entice buyers who have been waiting for borrowing rates to stabilize. In order for sentiment to improve, we also hope that the RBI can now keep the rate constant for a few quarters.
Mr. Ajendra Singh, VP-Sales and Marketing, Spectrum Metro
The RBI made a decision that deserves appreciation. To say that it was expected, would be untrue. It was rather unexpected because the speakers from the business had predicted another repo rate increase of 25 bps. The RBI, however, made the right choice to keep the repo rate the way it was. The decision also sheds light on the RBIs evolutionary mindset change. It would be much better if the RBI considered lowering repo rates to boost home demand.
Deepak Kapoor, Director, Gulshan Group
The RBIs decision to keep the repo rate unchanged after six consecutive hikes prove to be good in facilitating change for the real estate sector. We welcome this change in policy stance. The decision was not along the lines of our expectations to lower the repo rate. The sheer fact that after a year, the RBI has atleast decided to put a pause on the repo rate and not vote in favour of another hike is well-meaning for the real estate sector and homebuyers.
Ashwinder R Singh, CEO-Residential, Bhartiya Urban
Interest rates have significantly risen over the past couple of years. The current situation, in which the RBI has made the bold decision to keep interest rates unchanged, makes it a good option for investors and people who want to buy or invest in a home, even though the worlds top economies continue to raise interest rates. The Indian market is made significantly more competitive and alluring globally by maintaining the same interest rate. Additional foreign direct investment (FDI) into India may result from this.
The real estate sector has welcomed the RBIs decision to maintain the current repo rates. Nonetheless, the majority also anticipates that RBI will subsequently lower the repo rate to bolster the housing market and real estate investment climate. The RBI is expected to significantly boost both residential and commercial real estate investments.
