The RBI after a repeated hike on Thursday decided to keep the repo rate unchanged at 6.5%. This has come as a relief for several participants of real estate industry. This includes developers for sure, but developers claim that is a relief for homebuyers too.
For those unaware let me tell you, that home loans are directly connected with repo rate the higher the repo rate, the higher the interest on your loan.
Let’s have a look at what real estate industry experts have to say on the repo rate being unchanged.
“In contrast to the World Bank, India Inc. applauds the RBI’s decision to pause the rate hike cycle. This act of relief will restore confidence in homebuyers’ sentiment and boost demand rally in the real estate. The industry body now calls for fiscal intervention from the Government of India to cool the inflationary heat caused by persistent geopolitical turbulence caused by the collapse of foreign banks, supply chain challenges, and global financial instability. Additionally, devising innovative flexi or step-up EMI schemes by the banks and FIIS will be conducive for the market players to onboard new home buyers in the high interest rate regime.”
Dr Niranjan Hiranandani, Vice Chairman , NAREDCO National
“We laud the RBI for maintaining the repo rate, in a move that is bound to go a long way in sustaining the sales momentum that we’ve witnessed in the residential segment. Given the potential adverse impact of a hike in repo rate and its ripple effect on both Housing demand and supply, we, at CREDAI, are extremely pleased and welcome the central bank’s decision. This move would provide a further boost for the affordable and mid income housing segments, in particular. Coupled with the Central Government also hiking its outlay for the PMAY program during this year’s Budget, we expect the demand for affordable housing to grow in the upcoming quarters.”
Boman Irani, President elect, CREDAI National
“RBI’s decision to maintain the repo rate has been received well by real estate industry as it will not only accelerate housing demand and supply but also supplement sectoral growth overall. This move will especially provide an impetus to affordable housing, as purchasing power of homebuyers as well as overall industry dynamics remain relatively strong.”
Harsh Vardhan Patodia, president, CREDAI National
“The RBI’s decision to keep the repo rate unchanged at 6.50 per cent is a welcome move signaling that interest rate hikes could be over. Also, time to balance growth and inflation. This will certainly positively impact the rate sensitive segments of affordable and low-income group housing. Keeping the repo rate unchanged will help in offsetting the rising property rates and will reduce home buyers’ burden to a large extent. Real estate industry is linked with several other allied industries and therefore it impacts the entire economy. We urge the government to offer relaxations in stamp duty fees that it offered at the time of the pandemic so as to further encourage homebuyers’ interest in property buying.”
Sandeep Runwal – President, NAREDCO Maharashtra
“The RBI’s decision to keep the repo rate unchanged was a much-needed respite for the real estate sector. This decision will provide stability in the home loan category and keep the EMIs unchanged. It will maintain the buying sentiment in the real estate sector and may lead to an upsurge in the mid-segment housing category. We also expect the demand for luxury and premium housing to remain unaffected. Despite the positive impact of this decision, the RBI Governor has signalled that this move may only provide temporary relief and may be necessary to combat the inflationary growth in the country. However, we hope that interest rates will remain in single digits, which would be favourable for the real estate sector in India. Overall, this decision is likely to stabilise the real estate sector in the short term.”
Venkatesh Gopalkrishnan, CEO, Shapoorji Pallonji Real Estate
“Keeping the repo rate unchanged at 6.50 per cent is a good decision taken by RBI. This will help keep inflation in check and improve market sentiments, which is the need of the hour. This is a big booster for the real estate sector which was overlooked in the recently concluded budget. We can look forward to seeing resurgence for real estate demand. We hope that the State Government will step-in again to lighten the homebuyer’s load by reducing stamp duty to further boost the sentiments.”
Pritam Chivukula – Co-Founder & Director, Tridhaatu Realty and Treasurer, CREDAI MCHI
“Keeping the current market conditions and inflation in mind, the move by the RBI to keep the repo rate unchanged is a welcome one. This will help in keeping the economy on track and controlling inflation. We expect demand for housing to rise, more stability to property prices coupled with market sentiments improving. Also, for first-time home buyers, acquiring a home is considered as the biggest asset and this move will have a positive impact on a buyer’s decision.”
Himanshu Jain, VP – Sales, Marketing and CRM, Satellite Developers Pvt. Ltd. (SDPL)
“The RBI, has decided to keep its repo rate unchanged at 6.5%, with its stance at “withdraw of accommodation” and is an encouraging sign. While challenges in geopolitics and the resultant downside risks to growth prevail, the next few months will be critical and will define the course for 2023. It is a positive sign that the headline inflation is moderating, however it continues to remain above RBI’s target and thus remains a monitorable. The unchanged repo rate is likely to give some breather to homebuyers as the RBI has raised the repo rate by a cumulative 250 basis points since May 2022, thereby pushing up interest rates for homebuyers to 9.5% and above. Given the expected nominal growth in income levels paired with sturdy prices in a cautious economic environment, RBI’s pause on repo rate is a much-needed step to boost real estate sentiment.”
Vimal Nadar, Head of Research at Colliers India
“We appreciate that the RBI has not altered the REPO rates. After a time of turmoil, the market has remained calm, and this decision will be a huge relief for homebuyers. There is a growing demand for real estate, and consumers want to purchase properties from reputable developers. This decision demonstrates the strength and stability of the Indian economy, which will entice more people to buy homes and fulfil their real estate dreams. We believe that in future the central bank will think about lowering the REPO rates, which would be a huge relief for homebuyers.”
Manju Yagnik, Vice Chairperson of Nahar Group and Senior Vice President of NAREDCO- Maharashtra
“We are happy that the RBI has kept the REPO rates unchanged. The market has been stable after a period of volatility, and this decision will be big relief for homebuyers. There is rising demand for property, and home buyers are looking to purchase homes from a reputed developer. This decision shows that the Indian economy is stable and doing well, which will encourage home buyers to come forward and buy their dream homes. We are hopeful that in future the central bank will consider reducing the REPO rates, which will be great relief for the Home buyers.”
Ayushi Ashar Director, Ashar Group
“A good decision by RBI to keep the repo rate unchanged at 6.50 per cent. This will positively impact the entire real estate spectrum and value chain. Demand for housing will go up and the momentum that we were seeing in the last couple of quarters will continue.”
Bhushan Nemlekar, Director, Sumit Woods Limited
“The RBI’s decision to keep the repo rate unchanged at 6.50 per cent is in line with consumer sentiments. The real estate sector will see increased demand for housing whilst keeping inflation in check. This would also help in bringing more liquidity into the sector thus balancing growth.”
Samyak Jain, Director, Siddha Group
“The decision by the RBI leaving repo rates unchanged at 6.50 per cent is a good move which will halt inflationary trends and increase housing demand. We can expect market sentiments to improve as more liquidity comes into the sector. Further, we look forward to the government lowering stamp duty rates, which will bring cheer to homebuyers, driving housing demand.”
Manoj Patwal, Founder & MD, BetterServ Ventures Pvt. Ltd.
“The RBI’s decision to leave the repo rate unchanged at 6.50 per cent will surely help market sentiments to soar. This will keep inflation in check, improve housing demand and enhance growth of the sector. This will offset the huge financial burden on home buyers and will now see home buyers actively seeking to buy their desired home.”
Kairav Shah, Chief Sales Officer, Labdhi Lifestyle
Also Read: CREDAI Urges RBI to Maintain Repo Rate amid Increasing Construction Costs and Rising Housing Prices
