RBI Holds Repo Rate At 6.5% For 10th Time, Real Estate Sector Optimistic For Future Cuts
This cautious stance comes amid global economic uncertainties and inflationary concerns
In its latest Monetary Policy Committee (MPC) meeting, the Reserve Bank of India (RBI) announced the decision to maintain the repo rate at 6.5 per cent for the tenth consecutive time. This cautious stance comes amid global economic uncertainties and inflationary concerns. Real estate industry leaders welcomed the move, viewing it as a measure of stability, while expressing optimism for potential rate cuts in the near future.
Manoj Gaur, CMD of Gaurs Group and Chairman of CREDAI National, commented, "The decision to maintain the repo rate will inspire confidence among both buyers and developers. The real estate sector is currently expanding its footprint and this decision signifies economic stability. However, the affordable housing sector remains a concern, and we hope the RBI will address these challenges in future policy reviews."
Amrita Gupta, Director of Manglam Group, echoed similar sentiments, stating, “The cautious approach reflects the current economic climate. We anticipate a rate cut starting in December, which would boost affordability for homebuyers and stimulate demand in the housing market."
Aditya Kushwaha, CEO of Axis Ecorp, emphasised the importance of the RBI’s decision for luxury real estate, noting, "Despite the lack of a rate cut, robust demand and increased NRI investments are driving growth in luxury projects. This trend is likely to continue, with stable interest rates providing confidence to both domestic and foreign investors."
Mohit Goel, Managing Director of Omaxe, said, "Stable home loan rates will sustain buyer interest and maintain the positive sales momentum we've seen recently. While a rate cut would have been ideal, the RBI's decision reflects its commitment to balancing inflation management and economic growth."
Kushagr Ansal, Director of Ansal Housing, pointed out that stable rates will provide relief to potential buyers, despite rising housing costs. "This decision will boost consumer confidence, encouraging investment and driving the launch of new projects," he added.
For Manit Sethi, Director of Excentia Infra, the RBI's focus on maintaining rates aligned with the country's growth prospects, particularly benefiting tier-2 cities. "Stability in the repo rate supports real estate development in emerging areas," he said.
Ajendra Singh, Vice President of Spectrum@Metro, expressed a slight concern, suggesting a 25 basis point reduction could have been more supportive to the economy. However, he remained optimistic about India's projected 7 per cent growth rate for FY25, making it one of the fastest-growing economies globally.
Ravindra Gandhi, Founder of Tirasya Estates, added, "The status quo reflects stability amidst global challenges and could pave the way for future rate cuts. However, the affordable housing sector requires more attention."
Pradeep Aggarwal, Founder of Signature Global, reiterated the need for inflation management, stating that the policy stability during the festive season could support increased residential sales.
Mohit Jain, Managing Director of Krisumi Corporation, concluded, "The real estate industry had hoped for a rate reduction, but stable EMIs will still encourage homebuyers. Expectations of future cuts are keeping optimism high, and we foresee continued robust demand over the coming years."
As the Indian real estate sector navigates this period of stability, industry stakeholders remain hopeful for future rate cuts to further stimulate growth and investment in the market.
