In a continuation of its previous policy stand, the RBI has decided to keep the repo rate unchanged at 6.5% in its bi-monthly MPC meeting held today. The decision was in alignment with the real estate industry’s expectations and drew fairly positive responses from realty barons and doyens. Among the important announcements, the RBI also reiterated the FY24 GDP growth forecast at 6.5%. The top financial institution predicted FY24 CPI inflation to be at 5.1%.
Commenting on the RBI’s monetary policy stand, Vikas Garg, Joint Managing Director, Ganga Realty, said, “The decision to keep the repo rate unchanged is along the expected lines. The inflation rates have plummeted and demand for housing and commercial realty segments continues to rove in an upward growth trajectory. We welcome the RBI’s monetary policy on repo rates as they have factored in the economic scenario, variables, and possibilities and taken a praiseworthy decision. It will churn out good results for the real estate sector.”
Talking about his reaction, Saransh Trehan, Managing Director, Trehan Group, said, “Maintaining the status quo of repo rates will also play an important role in holding the home loan mortgage rates. The residential real estate demand has been rising with record-breaking home sales, especially in the National Capital Region. The decision will help in keeping the property demand buoyant and also motivate new homebuyers to invest in real estate markets. We hope that the decision helps in consolidating the Indian economy, lowering inflation rates, and achieving the FY24 GDP growth forecast of 6.5%.”
Venkatesh Gopalkrishnan, Director Group Promoter’s Office & CEO, Shapoorji Pallonji Real Estate, regarding today’s announcement on the RBI Monetary Policy. Added, "We welcome the Reserve Bank of India's prudent decision to maintain the repo rate unchanged for the second consecutive quarter. This demonstrates the central bank's steadfast commitment to fostering stability in the economy and creating an environment conducive to sustainable growth. We appreciate the significance of a stable monetary policy in sustaining long-term growth and promoting investor confidence. The unchanged repo rate provides a sense of certainty to developers and homebuyers alike, instilling faith in the real estate market. It is a positive development that will have far-reaching implications for the industry. While residential demand has showcased resilience, particularly in the luxury and premium segments, this decision by the RBI is poised to further propel the real estate sector. The unchanged repo rate not only encourages investment but also facilitates affordable home loans, making homeownership more accessible to aspiring buyers. We anticipate this to contribute positively to the overall market sentiment.”
Vivek Mohanani - MD & CEO, Ekta World was of the view, "The Indian economy has stood out strong and resilient against global headwinds. The RBI's decision to maintain the status quo for the second consecutive time was an expected move to focus on stability. Another repo rate hike by the RBI would have not augured well for the real estate sector as home loan interest rates are already at a higher level. Any further increase in policy rates would have had a substantial impact on buyer sentiments and affordability, which in turn could have curtailed demand. A further reduction in interest rates in the near future would be preferred to bolster overall market confidence and make it more attractive for home buyers."
Sharing his perspective Samyak Jain - Director, Siddha Group said, ““The decision to maintain the status quo by RBI in its key policy rates for the second time in a row was on the expected lines. This comes at a time when property prices are on the rise, adding a huge financial burden to the end consumer. The decision will unlikely have an immediate impact on homebuyers, but it does offer some stability to the real estate sector. This may trigger the decision of many home buyers who were actively seeking to buy their desired home. We look forward to government intervention by providing some relief to home buyers in the form of reduced stamp duty rates which will lighten their burden further.”
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