Parul
In a move that has resonated positively across the real estate sector, the Reserve Bank of India (RBI) has announced its decision to maintain the current policy rates. This decision, disclosed following the latest monetary policy committee meeting, is expected to usher in a period of stability and expansion, particularly benefiting the real estate industry.
This strategic decision by the RBI is seen as a catalyst that will stimulate growth within the housing market, with industry experts predicting a significant boon for prospective home buyers.
Prashant Sharma, President of the National Real Estate Development Council (NAREDCO) Maharashtra, shared his enthusiasm regarding the RBI’s stance. He attributed a recent surge in home sales to this positive financial environment, bolstered by optimistic consumer sentiment and supportive government policies. “We foresee an escalation in demand, particularly within the affordable and mid-segment housing markets. This trend is expected to persist, with hopes of a future reduction in the repo rate,” he noted.
Pritam Chivukula, Vice President of CREDAI-MCHI and Co-Founder & Director of Tridhaatu Realty, praised the RBI for its delicate balance between fostering growth and controlling inflation. “The housing sector’s triumph in recent quarters is commendable, supported by government initiatives aimed at revitalising the real estate market. The RBI’s recent policy decision is a significant indicator of continued growth, expected to boost consumer confidence and drive investments in property,” he remarked.
The RBI’s stance is expected to stimulate investment in real estate by keeping borrowing costs for consumers stable. This stability is anticipated to maintain the momentum in home purchases witnessed in recent quarters, according to experts.
Samyak Jain, Director of Siddha Group also commended the RBI for its role in managing inflation and ensuring economic liquidity. “The real estate market’s strong performance, fueled by growing home ownership demand and increasing income levels, positions us for a surge in demand. We are confident this growth will persist throughout the year,” Jain remarked.
Unchanged repo rate means stable interest rates
For homebuyers, the unchanged policy rates mean stable loan interest rates, making it an ideal time for potential homeowners to secure loans at attractive rates. Himanshu Jain, VP of Sales, Marketing, and CRM at Satellite Developers Private Limited (SDPL), noted the positive impact of the RBI’s decision on inflation and liquidity. He highlighted the boost in sales during the festive and post-festive seasons, expecting the trend to motivate more buyers towards homeownership.
Ankush Kaul, chief business officer – Ambience Group also said that unchanged repo rate will also keep the public’s faith in the authorities intact with the elections around the corner.
“It is a welcome move and we anticipate that the upward trajectory that the real estate sector is sailing on shall continue. This decision shall be beneficial for both borrowers as well as developers bringing an equilibrium in financial volatility.” he said.
Nayan Raheja, Raheja Developers said that with more and more people are investing in the mid, premium, and luxury housing sectors, its a good move. “The developers, on their part, have increased the pace of new launches, as exhibited by the recent Q1 report. And the decision by RBI to not disturb the pace by keeping the repo rate unchanged will enthuse the sector as it will also provide some relief to borrowers as their EMIs will not rise,” he said.
While the real estate sector has warmly welcomed the RBI’s decision, experts advocate for a balanced outlook, advising vigilance regarding global economic trends and domestic fiscal policies. The continued growth of the sector is intertwined with broader economic stability and consumer confidence.
As the real estate industry moves forward, the significance of policy consistency in fostering an environment conducive to investment and growth cannot be overstated. Industry leaders remain optimistic, foreseeing the RBI’s decision as a foundational pillar that will support the continued prosperity of the sector and offer numerous opportunities for homebuyers.
