RBI today announced that it won’t change the repo rate. This means your housing loan interest won’t be impacted.
The EMI that you paid last month shall remain the same this month and for next few months.
Here’s what the Repo rate being unchanged means to you from the experts point of view
Boman Irani, President, CREDAI National
As anticipated, the RBI continues to keep the repo rate at 6.5%. However, the Indian real estate industry and the economy at large would have greatly benefitted from a rate cut, given that current macro-economic parameters are favourable and the rate has been maintained at 6.5% for the last 3 quarters. This move will keep home loan rates and cost of buying a house on the higher side for consumers and we hope that it does not disrupt homebuyers’ sentiments. With inflation relatively in check, economy growing at a faster than expected pace, reasonably good monsoon, RBI could have opted for a rate cut that would have provided the ideal opportunity to accelerate housing momentum and overall consumer spending, not just positively impacting growth of real estate but other sectors too.
Anuj Puri, Chairman – ANAROCK Group:
With the fundamentals of the Indian economy remaining strong and the recently announced GDP rates indicating positive outlook, the RBI once again decided to keep the repo rates unchanged. This is an extension of the festive bonanza that RBI gave to the homebuyers in its last policy announcement. It gives homebuyers yet another opportunity to make cost-optimized home purchases. If we consider the present trends, the housing market is on a bull run and unchanged home loan rates will only add to the overall positive consumer sentiments. Additionally, given that housing prices have escalated across the top 7 cities in the last one year, at least the unchanged home loan rates will give some relief to the homebuyers. Going forward, we may expect the momentum in housing sales to continue in the wake of the unchanged repo rates coupled with the resultant stable home loan rates and positive economic outlook on India.
Dharmendra Raichura VP Finance at Ashar Group
The RBI’s decision to keep the repo rate unchanged is a positive move for the real estate sector, ensuring stability in interest rates. The recently revealed Q2 GDP growth rate of 7.6% solidifies India’s status as the world’s fastest-growing major economy. Given that inflation is under control, the market anticipates that the RBI will probably maintain the current REPO rates. This decision brings a welcome period of stability after recent market volatility, providing much-needed support to the real estate sector and fostering sustained growth in the housing market.
Manju Yagnik, Vice Chairperson of Nahar Group and Senior VP, NAREDCO, Maharashtra
The importance of keeping inflation under observation while preserving economic development momentum is reflected in the decision to keep the repo rate at 6.5%. The affordability of house loans has been adversely affected by inflationary pressure, unaffordability, and a lack of new development, all of which have contributed to historically high-interest rates. As a result, demand for affordable housing, a substantial portion of the housing structure, has decreased. To encourage small urban housing, the Indian government has granted an additional interest subsidy of Rs 60,000 crore for residences up to Rs 40 lakh. Furthermore, with the festive tailwind, demand for house loans is anticipated to continue to be strong, indicating a robust increase in property sales.
