RBI's Decision To Maintain Interest Rates Sparks Optimism In Real Estate Sector

The Reserve Bank of India's (RBI) policy announcement today has significant implications for the real estate sector, especially in light of the recent election results. By prioritising economic stability, the RBI's decision to maintain interest rates is set to sustain the current momentum in the real estate market. Continued low borrowing costs will keep home loans affordable, encouraging both homebuyers and investors. Real estate experts are optimistic about the announcement, viewing it as a catalyst for sustained growth and increased market activity.

Avneesh Sood, Director Eros Group said that as the RBI maintains the repo rate at 6.5%, it demonstrates a prudent approach towards balancing economic stability and growth. "The RBI's decision, maintained for the seventh time, boosts confidence in the real estate sector. Stable interest rates assure homebuyers, fostering sustained development. Repo rate stability directly affects lending, potentially impacting home loan EMIs. With over 60% of home loans in India on floating rates, any change could significantly alter borrowing costs. This aligns with efforts to bolster economic resilience, fostering investment and growth in real estate, buoying consumer sentiment.

Prashant Sharma, President, Naredco Maharashtra welcomed the Reserve Bank of India's decision to maintain its current policy rates amidst the backdrop of volatile food prices, ongoing geopolitical tensions, and the Federal Reserve's extended pause on interest rates. “Looking ahead, it is crucial for the RBI to continue monitoring the evolving economic landscape, particularly in the aftermath of the Lok Sabha elections and the upcoming Union Budget. The policies and fiscal measures introduced next month will play a significant role in shaping the trajectory of our economy. A balanced and forward-looking approach will be essential to support sustained growth and stability in the real estate sector and the broader economy. We remain optimistic that the RBI, with its vigilant and adaptive stance, will continue to foster an environment conducive to economic resilience and development."

Pritam Chivukula, Vice President, CREDAI-MCHI and Co-Founder & Director, Tridhaatu Realty commented, "We commend the RBI for its prudent approach amid the current economic landscape, especially post Lok Sabha elections. As we anticipate the Union Budget, close monitoring of evolving economic policies is crucial. These policies will significantly influence future rate decisions. We appreciate the RBI's commitment to economic stability and look forward to its impact on the economic environment."

Rohan Khatau - Director, CCI Projects said, “RBI's decision to maintain the policy rate is a prudent step, considering the current economic conditions and inflationary trends. We believe that the RBI's balanced approach will foster a favourable environment for the real estate sector, enabling sustained growth and stability. We are optimistic that these measures will boost consumer confidence and investment, providing a robust foundation for future developments."

Vedanshu Kedia - Director, Prescon Group shared his opinion. He said, “We are particularly encouraged by the emphasis on maintaining liquidity and supporting financial institutions. These steps will contribute significantly to the sector's recovery and growth, enabling us to continue delivering high-quality housing solutions to our customers. We remain optimistic about the future and look forward to the positive impact of these policies on the broader economy."

Samyak Jain, Director, Siddha Group commented, “We commend the Reserve Bank of India's decision and its role in managing inflation and ensuring economic liquidity. The measures introduced are timely and reflect a balanced approach to sustaining economic growth while maintaining financial stability. The support for real estate is particularly encouraging fostering growth and development in the sector. These steps will help in boosting market confidence and providing the necessary impetus for the real estate industry to thrive."

Parth K. Mehta, CMD, Paradigm Realty commented, ‘We are pleased to note the RBI's decision to maintain the repo rates at 6.5 per cent. This strategic move provides a breather for homebuyers amidst a shuffling market, sustaining the positive momentum in residential real estate sales. With this steady approach from the RBI, aspiring homeowners can proceed with their purchase plans confidently, knowing that their investment decisions are backed by a conducive economic environment.”

Himanshu Jain, VP - Sales, Marketing and CRM, Satellite Developers (SDPL) opined, “The RBI’s decision to maintain the key policy rates is a significant step towards fostering growth. We welcome the measures introduced, as they are poised to create a conducive environment for the real estate sector. The focus on maintaining liquidity and ensuring favourable lending rates will undoubtedly spur housing demand, benefiting homebuyers and developers alike. We are optimistic that these policies will further enhance market confidence and drive sustained growth in the real estate industry."

G Hari Babu, National President of NAREDCO said that by keeping the inflation projection steady and maintaining the repo rate at 6.5 per cent, the central bank signals its commitment to economic stability. “This benefits both luxury and affordable housing developers. For homebuyers, stable borrowing costs may encourage property investments. With core inflation easing and fuel prices dropping, consumers might have extra funds for down payments or home improvements. Moreover, developers are adopting sustainable practices, appealing to eco-conscious buyers and aligning with global sustainability goals, enhancing the appeal of real estate investments.”

Anantharam Varayur, Co-founder, Manasum Senior Living commented, “The RBI's decision to maintain the inflation projection and repo rate at 6.5 per cent is encouraging for senior living residential projects. With easing core inflation and stable fuel prices, economic confidence is boosted. The stable repo rate ensures steady borrowing costs, attracting investment. This predictability supports growth in senior living options, promising long-term prospects as demand rises.”