 "Real estate")
Realtors on Thursday demanded that the RBI should consider reducing the repo rate in its next monetary policy review meeting to boost sales of residential properties, while welcoming stability in the interest rate regime.
Real estate developers and consultants feel that the strong momentum in the housing market will continue with the RBI deciding to keep the key policy rate unchanged.
The RBI decided to keep the policy rate unchanged for the sixth time in a row in view of global uncertainty and the need to bring down retail inflation to 4 per cent.
RBI governor Shaktikanta Das in his statement said the buoyant demand for residential housing, coupled with increased thrust on government capex, is expected to propel construction activity.
Realtors' apex body CREDAI President Boman Irani said the high GDP growth indicates that the "Indian economy is stable with relatively healthy macro-economic indicators and can absorb any impact of a repo rate cut, if announced, in the next financial year."
Industry body NAREDCO's National President G Hari Babu welcomed the decision to maintain the repo rate.
The unchanged repo rate will stimulate demand in the real estate sector, benefiting both residential and commercial segments, he said.
"Despite this stability, it's noteworthy that the current interest rate is at its highest level in the last four years. Therefore, we urge that this factor be taken into consideration in the upcoming review meeting. Such efforts will support the promotion of 'Affordable Housing' and the government's crucial initiative of 'Housing for All'," Babu said.
Among builders, Gaurs Group CMD Manoj Gaur hailed the RBI's move and said the real estate sector will continue to show buoyancy as in the past quarters.
Signature Global Chairman Pradeep Aggarwal said the repo rate should have been reduced but added that a stable interest rate would help in sustaining demand.
Nayan Raheja of Raheja Developers said the repo rate remains at a 4-year high, and a rollback would have boosted the affordable housing segment.
Krisumi Corporation MD Mohit Jain said, "While from the real estate sector perspective, a downward revision in rates would have been the best outcome, but the RBI's decision to hold rates implies steady EMIs for borrowers."
Avneesh Sood, Director at Eros Group, said this steady stance, upheld for the sixth consecutive time, is a boon for homebuyers, ensuring relatively affordable home loan interest rates.
Bengaluru-based Sterling Developers CMD Ramani Sastri said the pause in policy rate augurs well for the residential real estate sector. "Consumers are keen to buy homes as stability and security is on top of their mind now."
Co-working firm EFC (I) Founder & CEO Umesh Sahay said the stability will benefit the overall real estate sector, including the flexible workspace.
Among housing brokerage firms, Anarock Chairman Anuj Puri said a stable repo rate would keep residential momentum going.
According to Anarock data, housing sales rose 31 per cent this year to nearly 4.77 lakh units -- an all-time high -- across seven major cities, despite price appreciation by an average of 15 per cent and higher mortgage rates.
Housing.com CEO Dhruv Agarwala said the stability in home loan interest rates offers a welcome respite to borrowers, with no immediate increase in monthly EMIs.
"Looking ahead, with optimistic projections for improved growth and subdued inflation, we foresee a potential downward adjustment in the repo rate by mid-2024," he said.
Square Yards Co-founder and CFO Piyush Bothra said this move is a big positive for the affordable and low-income housing segments, which are responsive to interest rate fluctuations.
India Sotheby's International Realty MD Amit Goyal said, "Headline inflation has moderated to 5.5 per cent, which is positive news. If the current scenario persists, we may anticipate a rate cut in the next MPC meeting. Overall, the current situation bodes well for the real estate market, and we anticipate robust demand to continue, particularly in the luxury real estate segment."
Among global property consultants, Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE, said the stability in interest rates is poised to motivate potential homebuyers and empower developers to plan and launch new projects with increased confidence.
Knight Frank India CMD Shishir Baijal described the move as a comforting signal for the real estate sector.
Anshul Jain, Managing Director - India & Southeast Asia at Cushman & Wakefield, said, "For the Indian Real estate space, we do not expect today's update to have any material impact on the ongoing positive sentiment. However, we hope the interest rates start to drop soon as this will also revive sentiments of affordable homebuyers."
Vestian CEO Shrinivas Rao said, "If inflation comes down under RBI's target limit, the second half of 2024 may witness rate cuts, further boosting the housing demand." Samantak Das, Chief Economist at JLL India, hoped for a rate cut, which would give a massive fillip to affordability in 2024.
Colliers India Senior Director Research Vimal Nadar said the stability in interest rates not only provides continued relief to homebuyers in the form of predictable EMIs but also aids real estate developers in having greater confidence in near-term financing costs.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
