RBI MPC keeps repo rate at 6.5%: What does real estate industry think?

Repo rate unchanged: The experts in the real estate industry said that this decision is likely to keep the momentum in the industry intact

Reserve Bank of India's Monetary Policy Committee (RBI MPC) on Thursday kept the repo rate unchanged at 6.5 per cent for the sixth consecutive time. Experts in the real estate industry said that this decision is likely to keep the momentum intact.

RBI MPC: Repo rate unchanged, what do real estate experts say?

Shrinivas Rao, FRICS, chief executive officer, Vestian:

It is a welcome move to curb inflation and control liquidity in the market. Moreover, this stability in the monetary policy, along with robust economic growth, may result in sustained demand for real estate assets.

Mohit Jain, managing director, Krisumi Corporation:

 

While from the real estate sector perspective, a downward revision in rates would have been the best outcome, the RBI's decision to hold rates implies steady EMIs for borrowers. We expect continued momentum in sales across various property segments, including affordable, mid-range, and luxury housing throughout various regions for the foreseeable future. A downward revision, which is expected later this year, would further propel the sector.

Vimal Nadar, senior director (Research), Colliers India:

The stability 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. The steadiness in the real estate ecosystem augurs well for healthier balance sheets and should provide further momentum to sales in the residential segment.

Pradeep Aggarwal, founder and chairman, Signature Global (India) Ltd:

With the reduction in policy rates would have been the best scenario for interest-sensitive sectors like the real estate sector, policy continuity is the next best outcome for both borrowers and developers alike. The decision allows homebuyers to make informed choices, which is expected to result in enhanced demand across all housing segments in line with the country's overall economic progress.

Amit Goyal, managing director, India Sotheby's International Realty:

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.

Anuj Puri, chairman at Anarock:

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 the ongoing robustness of India's positive economic outlook.

Nitin Bavisi, chief financial officer, Ajmera Realty & Infra India Ltd

With the RBI highlighting residential housing as the growth propeller for construction activity, we foresee a strong growth-led demand across real estate markets, especially within and around key cities undergoing major infrastructural transformations. The pause of the repo rate will empower the masses with strengthened purchasing power, thus providing momentum towards residential purchases and overall, contributing to the economic growth of the country.