Unchanged Repo Rate Augurs Well For Real Estate

BY Realty Plus

Abhishek Kapoor, Chief Executive Officer, Puravankara Limited said, "The decision by the Monetary Policy Committee (MPC) to keep the policy rate unchanged at 6.5% augurs well for the real estate sector and is in line with our expectations.  Demand for housing has maintained its momentum despite several rate hikes in the past year, and we expect the same to continue as the decision brings more stability to lending rates. Homebuyers will also be encouraged by the buoyancy in GDP growth and the strong launch pipeline by Grade A developers. At a macroeconomic level, the central bank's move will ensure that India's growth trajectory remains stable amidst ongoing global financial market volatility and concerns of an economic slowdown in other economies."

Shiwang Suraj, Founder & Director of Inframantra said “Homeowners would be relieved for the time being by the Reserve Bank of India's most recent decision to retain the status quo on the repo rate. Home loan rates will remain steady if the repo rate is not increased. It might also aid in addressing a different rupee-related difficulty. 

Ankush Kaul, Chief Business Office of Ambience Group was of the opinion that the RBI's resolute commitment to balance and prudent measures safeguards the nation's financial course, steering us towards a resilient future. With the clear intention to safeguard the economy from any adverse implication out of the ongoing global financial turmoil. India's economy continues to show resilience and looks promising despite the disruptions. The encouraging growth in the consumption pattern will continue to have a positive rub off on the home loan demand aided by consumer sentiments.”

Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE on the RBI’s Repo rate said, “The RBI has taken a balanced approach to containing inflation and managing external volatilities. Given this scenario, we can expect the tightening cycle to be nearing its end, which would boost private capex demand and support domestic consumption”.

Naveen Kulkarni, Chief Investment Officer, Axis Securities PMS sharing his comments said, “The RBI's decision to keep policy rates unchanged was in-line with expectations. It was primarily supported by the significant drop in retail inflation in Apr '23 and the further softening of inflationary pressures expected in the coming months. We expect an extended pause on interest rates from the regulator in the near future. Banks' Earnings growth will remain healthy, though the pace could decelerate compared to growth in FY23.”

Manju Yagnik, Vice Chairperson of Nahar Group and Senior Vice President of NAREDCO- Maharashtra, said, “It will keep the real estate market in a buying mood and could increase the mid-segment housing market. We also anticipate no change in the demand for upscale and exclusive dwellings. Despite the good effects of this choice, the governor of the RBI has indicated that this action may only offer short-term solace and may be required to stop the nation's inflationary trend. This decision of keeping the rates unchanged will enable the real estate sector to consistently grow.”

According to SBI CAPS All other policy rates such as MSF, bank rate, and SDF also remained unchanged MPC retained its stance of being focused on withdrawal of accommodation to ensure inflation progressively aligns with target while supporting growth, by a similar 5 1 vote as last time While the policy was on expected lines, the Governor emphasized on RBI’s quest to bring CPI to 4 y/y and noted recent rate hikes by global Central Banks after pauses It reiterates that it’s a pause and not a pivot.

Tags : Abhishek Kapoor Chief Executive Officer Puravankara Limited Monetary Policy Committee policy rate real estate sector housing momentum expectations demand GDP growth Shiwang Suraj Founder & Director of Inframantra Ankush Kaul Chief Business Office of Ambience Group Anshuman Magazine Chairman & CEO - India South-East Asia Middle East & Africa CBRE Naveen Kulkarni Chief Investment Officer Axis Securities Manju Yagnik Vice Chairperson of Nahar Group Senior Vice President NAREDCO- Maharashtra