The Reserve Bank of India-led Monetary Policy Committee decided to keep the repo rate unchanged at 6.5 per cent for the seventh consecutive time.
Pradeep Aggarwal, Founder & Chairman Signature Global (India) Ltd. said, "The RBI has once again demonstrated great economic prudence and fiscal foresight by keeping the repo rate unchanged for the seventh consecutive time. A stable and predict repo rate lends credence and confidence to the average homebuyer who can be assured while taking home loans. This stability has a direct cascading effect on the growth of the real estate sector, which in turn contributes significantly towards India's GDP and future growth prospects."
Shrinivas Rao, FRICS, CEO, Vestian said “RBI decision is in line with the current situation as inflation remains out of the target range of RBI, due to soaring food prices in the past couple of months. Stable repo rates for more than a year have brought certainty into the real estate market. However, rate cuts are expected in the second half of 2024 if the inflation falls under the upper limit of 4%, set by RBI.
Santosh Agarwal, Executive Director and CFO, Alphacorp expressed, “The RBI's first policy announcement for FY 2024-25, Amidst intense global economic assessments, we navigating the complexities of market dynamics, with Governor Shaktikanta Das at the helm, the six-member Monetary Policy Committee meticulously evaluates the impact of global factors on India's GDP growth and inflation trajectory. The decision to maintain the key policy repo rate at 6.5% for the seventh consecutive time underscores the significance of monetary stability for the real estate sector. We are keenly anticipating signals influencing investment strategies, recognizing the critical role of RBI's decisions in shaping future market dynamics."
Anshul Jain, Chief Executive India & SE Asia & APAC Tenant Representation, Cushman & Wakefield said, "RBI’s decision to maintain the repo rate at 6.5% is on expected lines. Though the central bank has been showing its deep commitment to bringing the headline inflation down to around 4%, India’s CPI inflation has been stable for a considerable period, and we expect the RBI to capitalize on prevailing healthy macro-economic climate and implement a rate cut in one of the subsequent MPC meets to boost consumer spending and demand. This would provide a boost to the residential sector, particularly affordable housing."
Vimal Nadar, Senior Director & Head, Research at Colliers India said, " Against the backdrop of inflation cooling down in recent months and a projected GDP growth rate of 7% for FY2025, the decision to uphold benchmark lending rates reinforces investor confidence. For the real estate sector, the decision offers a sense of continuity and predictability. It also provides a solid foundation for future investment and development initiatives. Developers and investors can capitalize on the conducive environment to explore new opportunities and drive innovation in the market. Moreover, unchanged lending rates continue to present EMI dependent buyers a rational opportunity to fulfil their home-ownership aspirations. With anticipation of rate cuts in the ongoing fiscal year, the momentum in residential segment is likely to persist.”
Gurmit Singh Arora, National President, Indian Plumbing Association, said, “The Reserve Bank Of India's decision to maintain the repo rate steady at 6.5% during the ongoing global economic downturn and the spiraling inflation is indeed a pragmatic choice to protect the domestic economy. Regarding plumbing together with sanitary ware, decreasing profits as a result of increasing volatile costs of and supply chain had been a major concern in the past. As the lending rate eases down a bit, one can focus on restructuring the units and driving for efficiency instead of overlooking the increasing price restructuring. Pipe sanctioners, water pumps and supplying companies will facilitate conditions for their cash flow and provide stability for cycle periods.”
Ashwin Chadha, CEO, India Sotheby's International Realty shared, “Once again, the RBI has maintained its policy rates, aligning with expectations. However, the encouraging news is that inflation has decreased over the past couple of months, while growth prospects have improved. Economic growth has remained robust, evidenced by the above-expected GDP growth during Q3 FY’24. Recently, the World Bank also revised India's FY25 growth projection upwards to 6.6%, with FY24 GDP estimated at 7.5%.”
