For millions of existing and prospective homebuyers, this decision brings much-needed predictability in borrowing costs, especially at a time when global uncertainties and rising construction costs have been putting pressure on the real estate sector.

Stable EMIs Bring Relief to Homebuyers

With the repo rate unchanged, banks are unlikely to increase home loan interest rates immediately, which directly translates into:

• No sudden jump in EMIs for existing borrowers
• Better affordability for new homebuyers
• Improved loan planning and budgeting

According to Shrinivas Rao, CEO, Vestian, the move will help keep mortgage rates steady and competitive, cushioning the impact of rising construction costs and supporting overall demand.

A ‘Wait and Watch’ Move by RBI

The RBI’s decision reflects a cautious approach amid global uncertainties, particularly the ongoing West Asia crisis, which has impacted fuel prices and supply chains.

Vimal Nadar, Head of Research, Colliers India, noted that while inflation has seen some upward pressure due to crude price volatility, it remains relatively contained, with projections around 4.6% for FY27, while GDP growth is expected at 6.9%.

This balance between inflation control and growth support is key to maintaining stable interest rates for borrowers.

Boost to Homebuyer Confidence

For homebuyers, the biggest advantage is confidence in long-term financial planning.

Piyush Bothra, Co-founder & CFO, Square Yards, highlighted that stable interest rates bring predictability, especially for mid-income and premium homebuyers, ensuring that demand remains resilient.

Similarly, Dharmendra Raichura, VP Finance, Ashar Group, emphasized that manageable EMIs and stable rates improve affordability, allowing buyers to make purchase decisions with greater confidence.

Positive Impact on Housing Demand

The decision is expected to sustain demand across key housing segments, particularly:

• Mid-income housing
• Premium housing
• End-user driven demand

Manju Yagnik, Vice Chairperson, Nahar Group and Senior VP, NAREDCO Maharashtra, pointed out that a stable rate environment is critical at a time when residential transaction values are already seeing steady growth.

Outlook: Stability for Now

While the current stance supports homebuyers, experts indicate that future rate movements will depend on inflation trends and global factors.

Key factors to watch:

• Crude oil prices
• Supply chain disruptions
• Inflation trajectory

The Bottom Line

RBI’s decision to keep the repo rate unchanged at 5.25% provides EMI stability, improved affordability, and stronger confidence for homebuyers.

In a volatile global environment, this move ensures that the housing market remains steady and accessible, especially for end-users planning long-term investments.

Also Read: RBI Cuts Repo Rate by 25bps: Lower Home Loan Interest for Homebuyers

The post RBI Keeps Repo Rate at 5.25%, Ensures Stable EMIs for Homebuyers appeared first on Square Feat India.

The realty indices opened flat to marginally positive, indicating that investors were largely holding their positions rather than reacting sharply at the opening bell.

Opening Trade: Stability Over Aggression

At the market open, real estate stocks showed measured movement, mirroring the broader market’s guarded tone.

• Large-cap developers opened steady, providing a stable base to the sector
• Mid-cap realty stocks traded mixed, with selective buying visible
• Volumes were moderate, signalling a wait-and-watch approach

The early trade suggested that investors were positioning cautiously, aware that interest rate cues would play a decisive role in shaping sentiment through the day.

Stock-Specific Action in Early Trade

While the sector as a whole remained range-bound at the open, select developer stocks stood out:

• Companies with strong residential exposure and steady sales momentum attracted early interest
• Stocks with recent run-ups saw mild profit-booking
• Balance-sheet strength and execution visibility remained key differentiators

Overall, the opening session was more about stock selection than sector-wide momentum.

RBI Keeps Repo Rate Unchanged at 5.25%: Market Reacts

The tone of trade shifted modestly after the Reserve Bank of India announced that it would keep the repo rate unchanged at 5.25%.

The decision was largely in line with market expectations and was received with relief rather than surprise, especially by interest-rate-sensitive sectors like real estate.

Following the announcement:

• Realty indices held on to their opening levels
• Selling pressure remained limited
• Select stocks saw incremental buying interest

The absence of a rate hike helped maintain confidence across the sector.

What the Repo Rate Decision Means for Real Estate

An unchanged repo rate carries important implications for the real estate market:

• Home loan rates are likely to remain stable, supporting buyer sentiment
• Developers benefit from predictable borrowing costs
• Financing conditions for ongoing and upcoming projects remain manageable
• Demand visibility, especially in residential housing, stays intact

For the real estate sector, stability in interest rates is often more valuable than aggressive easing, as it allows both buyers and developers to plan with confidence.

How the Market Read Today’s Signals

The combination of a steady market open and a neutral RBI decision reinforced the view that the real estate sector is currently in a phase of consolidation rather than correction.

Investors appeared reassured by:

• Policy continuity
• Absence of inflation-related shocks
• Stable macroeconomic signals

As a result, realty stocks avoided sharp swings and traded with composure through the session.

What to Expect Going Forward

In the near term, real estate stocks are expected to:

• Trade in a range with selective upside
• Respond more to company-specific developments than macro triggers
• Remain sensitive to banking and NBFC stock movements

Over the medium term, stable interest rates could continue to support residential demand and keep investor interest alive in quality developers.

The Bigger Picture

Today’s market action underscored a key reality for the real estate sector: stability is strength. With interest rates unchanged and demand fundamentals holding firm, real estate stocks appear positioned to weather short-term volatility while awaiting stronger growth triggers.

For investors and homebuyers alike, the message from today’s trade was clear — the environment remains supportive, even if momentum builds gradually.

Also Read:  Realty Stocks End Week on a Festive High: Big Developers Shine, Mid-Caps Lose Sparkle as Diwali Momentum Fades

The post 🏗️ Realty Stocks Stay Resilient as Markets Open; RBI’s Steady Repo Rate Lends Support to the Sector appeared first on Square Feat India.

Dr Niranjan Hiranandani, MD, Hiranandani Group
The status quo in repo rate by RBI is governed by a mix of global and domestic factors reflecting better anchoring of inflation and nimble liquidity management. With an outpaced GDP growth and a downward inflation curve trajectory, India’s economic performance is noteworthy despite geo-economic shocks. Development of infrastructure, increased labour employment, enhanced fiscal expenditures, improved governance, and regulations along with structural policy reforms reflect the RBI’s multifaceted approach to strengthening India’s financial stability. RBI indicates emphasises the need to consider macro-economic broad risk factors while keeping customer-centricity in mind while deploying effective monetary policy. Hence, retaining an accommodative stance even under the benign geo-political mood is a step in the right direction. The uptick in new project launches, fresh supply of housing units, soaring sales in luxury housing, record high property registrations, and an average price appreciation of 7% demonstrates the strong real estate market performance index in the backdrop of a conducive market scenario. An increase in government capital expenditures towards building physical infrastructure and fuelling liquidity management will continue to boost construction activities. This will increase employment, growth in GDP, housing demand, and economic stimulation. Industry highly recommends differential policy treatment to combat negative growth in the affordable housing segment. A calibrated approach including fiscal intervention, tax exemption or cross-subsidization is necessary to restore growth in affordable housing.

Anuj Puri, Chairman – ANAROCK Group
With the fundamentals of the Indian economy remaining strong despite all global headwinds and inflation well under control, the RBI once again decided to keep the repo rates unchanged at 6.5%, thus extending the festive bonanza that it gave to the homebuyers in its last two policy announcements. Thus, homebuyers retain their advantage of relatively affordable home loan interest rates.
If we consider the present trends, the housing market has been unstoppable, and unchanged home loan rates will help maintain the overall positive consumer sentiments. Given that housing prices have risen across the top 7 cities in the last one year, this breather by the RBI is a distinct advantage to homebuyers. Going forward, we can expect the momentum in housing sales to continue, significantly aided by the unchanged repo rates which will keep home loan interest rates attractive and also signal ongoing robustness of India’s positive economic outlook.

Ayushi Ashar – Director at Ashar Group & Member of Managing Committee of MCHI-CREDAI
The consistent maintenance of the repo rate at 6.5% for the sixth consecutive time reflects the central bank’s commitment to achieving the 4% Consumer Price Index (CPI) target. This stability in monetary policy is crucial for fostering economic predictability and sustaining investor confidence. An unchanged rate may seem static, signals a strategic approach to balance inflation control with economic growth. As a real estate developer, we acknowledge the importance of a steady interest rate environment, as it influences borrowing costs and subsequently impacts the property market. The resilience in the repo rate provides a conducive atmosphere for sustainable development.

Keval Valambhia COO CREDAI MCHI
Ensuring stability in interest rates holds profound implications for both the residential and commercial real estate domains. Keeping the Repo rates low will foster an environment of financial accessibility through consistently low borrowing costs. Stable interest rates serve as a pivotal catalyst for driving heightened interest and investment in properties across both sectors. This, in effect, generates a ripple effect of increased demand, thereby injecting vitality into the real estate industry and also to economy at large. Amidst the intricacies of economic fluctuations and market uncertainties, the imperative of prioritizing affordable housing cannot be overstated.

Anshul Jain, Managing Director, India & Southeast Asia and Head of APAC Tenant Representation, Cushman & Wakefield
The update is in line with the last policy statement from RBI where the expectation was for the benchmark repo rate to stay unchanged at 6.5% and to have the target inflation rate of 4%, down from the current average of around 5.5%. For the Indian Real estate space, we do not expect the today’s update to have any material impact on the on-going positive sentiment. However, we hope the interest rates start to drop soon as this will also revive sentiments of affordable homebuyers.

Manju Yagnik, Vice Chairperson of Nahar Group and Senior Vice President of NAREDCO- Maharashtra
The RBI has maintained the 6.5% repo rate, as expected. Nonetheless, considering that the macroeconomic conditions are favourable and the rate has been held at 6.5% for the past few quarters, the Indian real estate market and the overall economy would have benefited immensely from a rate reduction. This action will keep consumer housing costs and mortgage rates higher, and we hope it won’t negatively affect the feelings of prospective homeowners.

Dr. Samantak Das, Chief Economist and Head- Research & REIS, India, JLL
India’s economy, driven by accelerating growth indicators and softening inflation has provided comfortable legroom to the RBI to keep repo rate unchanged at 6.5% for the sixth consecutive time. Despite continued global uncertainties, India’s GDP growth has been strong due to robust domestic demand due to structural drivers of infrastructure and digital transformation of the economy. India’s residential markets in 2023 hit a historic peak, buoyed by positive buyer sentiment and still-healthy affordability levels. 2023 sales were in fact 25% higher than the previous highs seen in 2010. At the prevailing interest rates, we expect the residential sales market to clock a 15-18% y-o-y growth in 2024 too keeping the current momentum intact. Given India’s growth projections, we are hopeful that a future repo rate cut would give a massive fillip to affordability in 2024, which will be second only to 2021 peak affordability levels reported in JLL’s Home Purchase Affordability Index. This is likely to push India’s residential sales in value terms to over INR 3 lakh crore over the next year with the potential to double over the next five years, supported by the policy ecosystem and a pragmatic interest rate regime.

Vihang Sarnaik, Director, Vihang Group
We’re pleased with the RBI’s decision to maintain the status quo on REPO, especially given the ongoing inflation above the 4 per cent target. It aligns with market expectations, indicating a sense of stability in the current monetary policy. As a leading developer catering the middle-class housing aspirations, this will keep the housing demand intact. The decision to keep the repo rate intact will help developers like us who catering the middle-class aspiration of owning a home. It will help to continue the current momentum in real estate sales as even a 0.25 BPS increase would have impacted the home-buying sentiments in this segment.

Nikunj Sanghavi, Managing Director – Veena Developers, Treasurer – CREDAI MCHI
The decision to uphold the current repo rate is a welcome move in the face of a challenging economic environment world wide, showcasing a judicious approach to balancing diverse sectoral needs, including real estate. Recognizing the intricate dynamics in transmitting repo rate adjustments to lending rates, this decision provides a glimmer of positivity that holds the potential to invigorate buyer sentiments. Nevertheless, as an industry, we maintain vigilance, considering the cumulative impact of recent rate hikes on demand, especially in the affordable and middle-income segments. Emphasizing the broader economic interest and the housing industry’s well-being, we advocate for a future reduction in the repo rate by the RBI.

Also Read: Housing sales momentum to continue as RBI holds repo rate

The post RBI Keeps Repo Rate Unchanged appeared first on Square Feat India.

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.

Also Read: Good News for Homebuyers availing a Home Loan

The post Good News: Unchanged Repo Rate, no Change in Home Loan interest appeared first on Square Feat India.

The reason being that the RBI today announced that the Repo Rate shall remain unchanged.

In June the RBI had increased the Repo rate from 6.25 to 6.5 a .25 basis point increase.

However, on Thursday the RBI announced that Repo rate shall be 6.5 which means no hike.

What does this mean for a homebuyer? Higher the Repo rate, higher the lending interest, so when the Repo rate is stable the interest rates are also expected to be stable.

Here’s what industry experts got to say on this.

National Vice Chairman of NAREDCO, Dr. Niranjan Hiranandani, said, “RBI’s pause in rate hikes over the past few quarters will certainly drive up real estate growth. With stronger domestic consumption and NRI demand, the upcoming festive tailwinds are expected to create demand traction in the ownership and built-to-rent housing segments. In recent years, corporate balance sheets have improved due to ample liquidity, market consolidation, alternative funding avenues, and heavy debt servicing. Consequently, the market is experiencing a supply catch-up to meet the soaring demand for mid-priced and luxury housing, while the weakening demand for affordable housing represents a spoiler alert. I believe the Indian commercial segment is attractive to global players due to its cost effectiveness and availability of skilled talent. A sustained economic expansion has led to a rise in the demand for office spaces, organized retail spaces, and warehouses in Indian commercial real estate. There is, however, a possibility that tenants will consolidate and reorganize offices as flex workspaces become more popular. Real GDP growth pegged at 6.5% for FY 23–24 is in anticipation of the Indian economy’s resilience to withstand geo-political upheaval due to global realignment. India is enjoying its goldilocks moment as economic activities rebound, with an uptick in private and public capex, enhanced capacity utilization, robust domestic demand, and favorable demographic dividends.”

Boman Irani, President, CREDAI, said, “RBI’s stance of maintaining the repo rate at 6.5% is a cautious step towards further controlling inflation in the long run. With the economy on track & driven by sustained demand across sectors, we at CREDAI reiterate our view that it will be beneficial for consumer sentiment if a repo rate cut is announced in the next MPC review. This will increase consumer spending in the festive season & fuel demand across sectors, boosting our Indian growth story.”

Manju Yagnik, Vice Chairperson of Nahar Group and Senior VP, NAREDCO, Maharashtra, said, “The RBI’s announcement today provides additional relief to borrowers of home loans who are dealing with higher loan EMIs and longer loan terms as a result of a prior rate hikes. Since loan tenures cannot be extended beyond the borrower’s retirement age, the only option lenders have is to raise EMIs, which may not be viable for many borrowers. Lowering their debt burden should be the primary concern for borrowers at this point. Refinancing to a lower rate can directly help tackle this issue. A lower interest rate can reduce loan terms’ lengthening while saving borrowers some of their hard-earned money. The borrowers can again thank the RBI for their decision. Additionally, to lessen their debt load, borrowers may think about voluntarily raising their EMIs or prepaying 5% of their loan sum each year.”

Anuj Puri, Chairman – ANAROCK Group, said, “As widely anticipated, the RBI has decided to keep the repo rates unchanged at 6.5%. India continues to outperform other countries in terms of consumption and with the festive season coming up, the RBI will not risk denting it. This is nothing but good news for aspiring homebuyers on the market for a purchase in the near future. The unchanged repo rate will help maintain the momentum in housing sales – particularly in the mid and luxury segments, which did significantly well in H1 2023. As per ANAROCK Research, we saw total housing sales of approx. 2.29 lakh units across the top 7 cities in H1 2023, the highest half yearly sales in the last decade. However, the risk of inflation continues to lurk and if it rises further, there could be some repercussions on overall sales, especially in the cost-sensitive affordable housing segment which has already been severely impacted by the pandemic over the last couple of years. Amidst the rising cost of these properties and the cumulative 250 bps rate hikes by the RBI in the last one year and more, affordable housing buyers have taken the severest blow. As per ANAROCK Research, homebuyers’ EMIs jumped up by 20% in the last two years. Home loan borrowers who were paying an EMI of approx. INR 22,700 in July 2021 are now paying approx. INR 27,300 – an increase of approx. INR 4,600 per month. This 20% increase in the EMI has resulted in a jump of approx. INR 11 lakh in the overall interest component – from approx. INR 24.5 lakh interest payable in 2021 to approx. INR 35.5 lakh today. The total interest payable over a 20-year tenure is now more than the principal amount.”

Dr. Samantak Das, Chief Economist and Executive Director, Research, JLL India, said, “The decision to maintain the policy rate unchanged at 6.50% displays the steadfast and vigilant stance of the monetary policy committee. The focus on withdrawal of accommodation is likely to continue with stickiness in inflationary pressure due to expectation of a sub-normal to normal monsoon. While the current vegetable price growth is expected to bring headline inflation above the tolerance band, a likely reversion to mean of the same and a long-term view of balancing growth amidst this temporary inflation rise kept RBI in status quo mode. This third pause in policy rates continues to remain as positive news for the real estate sector with the residential segment carrying forward its growth momentum through successive quarters. Residential sales during H1 2023 grew by 21% y-o-y, yet another period of high growth. It is interesting to observe that residential sales have consistently reached new peaks in each successive quarter over the past year. While home prices have also risen by 8-15% over the last twelve months, this increase is likely to be kept in balance by the countervailing forces of the unchanged policy rates. With interest rates holding steady, affordability synergies will continue to persist and thus support the homebuyer momentum and residential sales during the coming quarters.”

Sandeep Runwal, President, NAREDCO Maharashtra, said, “The decision by the RBI to maintain the repo rates at 6.50 percent is a favorable step, though a decrease in these rates would have positively impacted the optimism of potential homebuyers resulting in stimulated home sales. An adjustment like that would have injected more funds into the pockets of prospective homebuyers, motivating them to make their dream home purchase. Nevertheless, the RBI has effectively managed to keep inflation rates within acceptable boundaries. The Indian economy has displayed resilience against global uncertainties and has exhibited commendable performance. Also, the government has implemented a range of constructive policy measures that have sustained housing sales momentum. Additionally, the government’s resolution to keep the Ready Reckoner (RR) rates steady for the state in 2023-24, has indeed elevated the confidence of homebuyers. We once again make an appeal to the government to consider reducing stamp duty rates, a move that could invigorate the interest of potential homebuyers. It is our hope that these positive advancements will uphold the enthusiasm of homebuyers, encouraging them to step forward and realize their homeownership aspirations.”

Pritam Chivukula – Vice President, CREDAI-MCHI and Co-Founder & Director, Tridhaatu Realty, said, “The RBI’s decision to keep the repo rate unchanged at 6.50 per cent, once again reiterates the government’s resolve in supporting the real estate industry with sustaining government policies. This pause in the repo rate will help in improving market sentiments which is essential, given the upcoming festive season. This will drive housing demand, while controlling inflationary trends. We expect the government to continue with industry friendly policies that will sustain housing sales. We also look forward to the state government reducing stamp duty which will further bring relief to home buyers and boost home sales.”

Samyak Jain – Director, Siddha Group, said,
“The RBI’s choice to keep its key policy rates unchanged for the third consecutive occasion was anticipated. This decision arrives amidst escalating property prices, which is already adding a huge financial burden to the end consumer. Although the decision might not have an immediate impact on the prospective homeowners, but it does offer some stability to the real estate sector. Consequently, it could potentially motivate several homebuyers who were actively in pursuit of their dream home. We eagerly anticipate governmental involvement, possibly through the reduction of stamp duty rates, which would offer relief to homebuyers and alleviate their financial strain even more.”

Dharmendra Raichura VP Finance at Ashar Group said, “We welcome the RBI’s decision to keep the repo rate unchanged. The Market expects that RBI will likely keep unchanged RERO rates throughout 2023. The Q2FY inflation could be around 6% against the RBI Forecast of 5.2%. This is due to a sharp increase in foodstuff prices. However, this looks like the temporary nature of the price rise in the foodstuff and may not affect the core inflation long-term. And therefore, the core inflation can remain steady until March 2024 at 5.1%. There is ample liquidity in the system, which is very positive for the banking system. In the future monetary policy, we are hopeful that RBI will take into account lowering the REPO rates, which would greatly ease home purchasers and the real estate sector.”

Sanjay Dutt, MD & CEO, Tata Realty & Infrastructure ltd said, “RBI’s decision to keep the repo rate unchanged at 6.5% shows their commitment to maintaining stability in this intricate market dynamics and ensuring favourable Indian economic growth. Taking note of the homebuyer sentiment towards the economy, this move will help in sustaining the demand for luxury residential properties while encouraging potential buyers to invest in their dream homes. Consequently, it also provides an opportune time for individuals to avail housing loans at attractive interest rates, resulting in a higher credit flow to the housing sector. Overall, this decision reassures the investors and stakeholders in potentially attracting more investments into the industry.”

Also Read: CREDAI Urges RBI to Maintain Repo Rate amid Increasing Construction Costs and Rising Housing Prices

The post Good News for Homebuyers availing a Home Loan appeared first on Square Feat India.

With no change in the Repo Rate the banks won’t be impacted adversely, the lending process is expected to be not impacted too. Here’s why it is a good news for homebuyers, especially those who seek to buy a home availaing a Home Loan Interest.

Dr Niranjan Hiranandani -National Vice Chairman -NAREDCO stated that, “India Inc hails accommodative stance of RBI with recurrent pause in repo rate hike at 6.50% as record high inflation eases off gradually. As a snowball effect, respite in homeloan interest rate will augur well to fuel uptick in housing sales across the segments. Now, the discerning homebuyers should avail the benefits of cooling inflation, stable home loan rates, conducive real estate market dynamics in the backdrop of buoyancy in GDP growth, domestic demand and availability of sufficient liquidity. With the festive season in tailwinds, a hiatus in interest rate hike will act as a growth catalyst and boost sales velocity. Notedly, rise in purchasing powers of Indian consumers as they tap into an alternative income avenue through capital markets, hike in salaries, job opportunities, gains in rental income are acting as funding streams for the homebuyers to buy residential assets. The supply of new housing stock is in tandem to the uptick in housing demand across property markets. Indian homebuyers are highly skewed towards luxury lifestyle as we witness rise in emerging first-gen millionaires, due to startup boost and enhanced business capacity utilization. This phenomenon prompts new homebuyers to take the plunge and secure the ownership home on the grounds of social security and stability.The stability reflected in rupee currency compared to others amidst geo-political storming has enabled India to retain its tag of fastest growing economy. Going forward, Industry anticipates a fall in interest rates as the Government and regulatory apex body re-orients their focus on GDP growth barometer.”

Dharmendra Raichura VP Finance at Ashar Group said, ”We are pleased that the RBI has decided to maintain REPO rates unchanged. Considering that inflation appears manageable, the Market expects that RBI will likely keep unchanged RERO rates throughout 2023. Recently we saw GDP numbers come out, which says Q4 GDP growth of 6.1% beats estimates, and overall FY23 growth at 7.2%. These factors indicate that the Indian economy is stable and doing well. Homebuyers would be much relieved by this decision because the market has been steady following a period of instability. There is a growing demand for real estate, and buyers want to buy properties from reputable developers. We are optimistic that RBI will consider reducing the REPO rates in the upcoming monetary policy, which will great relieve the Home buyers and the Real estate industry.”

Anuj Puri, Chairman – ANAROCK Group, said, “As was anticipated, the RBI has decided to keep the repo rates unchanged at 6.5%. This gives some respite to prospective homebuyers looking to avail of home loans in the near future. The unchanged repo rate can help maintain the momentum in housing sales, which has so far been firing on all cylinders in 2023. As per ANAROCK Research, we saw housing sales in first quarter of 2023 scale new heights, breaching the one lakh mark at 1.14 lakh units across the top 7 cities. Given the current unchanged rates, the outlook for those looking to buy their first home via a home loan soon remains favourable. Interest rates from most banks will continue in single digits. With top banks, they currently hover between 8.7 to 9.65%. A future rate hike, if any, may push the rates into double digits. The persisting financial instabilities in advanced economies of the world may have repercussions in India, causing the RBI to take such a step to face these headwinds.”

Manju Yagnik, Vice Chairperson of Nahar Group and Senior Vice President of NAREDCO- Maharashtra, said, “Regarding the latest RBI Monetary Policy statement, it was mentioned that the real estate sector was given a much-needed break by the RBI’s decision to maintain the repo rate constant. This choice would claim the same EMIs while bringing stability to the home loan category. It will keep the real estate market in a buying mood and could increase the mid-segment housing market. We also anticipate no change in the demand for upscale and exclusive dwellings. Despite the good effects of this choice, the governor of the RBI has indicated that this action may only offer short-term solace and may be required to stop the nation’s inflationary trend. This decision of keeping the rates unchanged will enable the real estate sector to consistently grow.”

Atul Banshal, Director-Finance, Omaxe Ltd, said, “We welcome the RBI’s decision to maintain the status quo on key policy interest rates. As anticipated, the RBI has displayed a growth-supportive policy stance.However, following a series of successive policy rate hikes, the real estate sector had anticipated some relief from the central bank in the form of a modest rate cut. Such a move would have bolstered demand and, subsequently, the overall economy. Consequently, we maintain our expectation that the RBI will opt for a policy rate reduction in the next review meeting, providing a much-needed impetus to various sectors, including real estate, and fostering economic growth.”

Vimal Nadar, Head of Research at Colliers India said, “Indian economy stands out strong amidst weakening global economic growth, at an estimated 6.5% for the year 2023-24. Headline inflation continues to lower, but still poses upside risks on back of volatile global conditions. RBII’s unabated commitment towards ‘withdrawal of accommodation’ is on expected lines and essential in the current uncertain global economic environment, marred with tight financial conditions, elevated inflation & geopolitical tensions. RBI’s move to keep the repo rate unchanged at 6.5% reinforces the Central Banks’s effort to support domestic growth and creating a conducive lending ecosystem. The latest inflation at 4.7% is encouraging, however needs to be aligned with other high-frequency indicators to buoy growth in a sustainable manner. As home loan rates are already at elevated levels of 9% and above, this is a significant breather for lenders, developers & homebuyers. First time homebuyers will be better placed to make their home buying decision in a stable lending rate regime. Fence sitters in the affordable & mid segment will have greater visibility of their EMIs & thus effect buying.”

Amit Goyal, Managing Director, India Sotheby’s International Realty, said, “In line with expectations, the Reserve Bank of India (RBI) has maintained the policy rate at 6.5% for the second consecutive time, following a series of six consecutive rate hikes. The RBI’s decision reflects their cautious approach in light of the persistent inflationary pressures and their potential impact on domestic consumption growth.However, the positive aspect is that the pause in rate hikes will instil a sense of optimism among borrowers and we expect the housing sales momentum to continue.”

Pradeep Aggarwal, Founder & Chairman, Signature Global (India) Ltd, “We appreciate the change in policy approach by the apex bank and decision to maintain the policy rate, instead of voting for another increase. This demonstrates a positive intent towards supporting the housing market and benefiting homebuyers. Home loan borrowers have embraced the previous interest rate hikes, and as long as the home loan interest rates hover around 9% per annum, it is unlikely to have a significant impact on housing demand.”

Also Read: CREDAI Urges RBI to Maintain Repo Rate amid Increasing Construction Costs and Rising Housing Prices

The post Home Loan Interest to stay in Single Digit appeared first on Square Feat India.

Much against general expectations, the RBI decided to keep the repo rates unchanged at 6.5% today. This is indeed good for the residential real estate market, which faces a tough road ahead amid massive layoffs by large corporates the world over. India is not decoupled from global economic dynamics and their invariable impact on the housing uptake here. The RBI’s decision to keep the repo rates unchanged comes as a welcome respite to homebuyers.

This particularly gives relief to affordable and mid segment homebuyers who feared a possible rate hike today, making property buying via home loans even harder. As is, affordable housing has been under stress since the pandemic. This segment (units priced

But in 2022, out of the total 3,64,880 units sold across the top 7 cities altogether, about 26% were in the affordable category. There has been a further dip in overall sales share in Q1 2023, as well. Out of total 1.14 lakh units sold in the top 7 cities in Q1 2023, affordable housing comprised just 20% share (or. approx. 23,110 units sold).

It bears keeping in mind that after the remarkable performance in Q1 2023, the housing market is now staring at major headwinds with layoffs, rising property prices, etc. which will pose a challenge in the short-term. The respite of home loan rates remaining unchanged is therefore very welcome.

Also Read: CREDAI Urges RBI to Maintain Repo Rate amid Increasing Construction Costs and Rising Housing Prices

The post <em>Unchanged Repo Rates A Boon for the Housing Market</em> appeared first on Square Feat India.