Real Estate Industry expects housing demand to remain strong as RBI keeps repo rate unchanged at 6.5%

Mumbai, 10th August 2023: The Reserve Bank of India’s (RBI) move to hold repo rate for the third consecutive time has boosted the prospects of the real estate sector which is displaying robust growth on the back of healthy sales and improved margins. The real estate industry expects housing demand to remain strong and is hopeful for a repo rate cut in the next round of monetary policy to boost growth.

Here is what real estate experts have to say:

Mr. Sandeep Runwal, President, NAREDCO Maharashtra
“The decision by the RBI to maintain the repo rates at 6.50 percent is a favorable step, though a decrease in these rates would have positively impacted the optimism of potential homebuyers resulting in stimulated home sales. An adjustment like that would have injected more funds into the pockets of prospective homebuyers, motivating them to make their dream home purchase. Nevertheless, the RBI has effectively managed to keep inflation rates within acceptable boundaries. The Indian economy has displayed resilience against global uncertainties and has exhibited commendable performance. Also, the government has implemented a range of constructive policy measures that have sustained housing sales momentum. Additionally, the government’s resolution to keep the Ready Reckoner (RR) rates steady for the state in 2023-24, has indeed elevated the confidence of homebuyers. We once again make an appeal to the government to consider reducing stamp duty rates, a move that could invigorate the interest of potential homebuyers. It is our hope that these positive advancements will uphold the enthusiasm of homebuyers, encouraging them to step forward and realize their homeownership aspirations.”

Mr. Pritam Chivukula – Vice President, CREDAI-MCHI and Co-Founder & Director, Tridhaatu Realty
“The RBI’s decision to keep the repo rate unchanged at 6.50 per cent, once again reiterates the government’s resolve in supporting the real estate industry with sustaining government policies. This pause in the repo rate will help in improving market sentiments which is essential, given the upcoming festive season. This will drive housing demand, while controlling inflationary trends. We expect the government to continue with industry friendly policies that will sustain housing sales. We also look forward to the state government reducing stamp duty which will further bring relief to home buyers and boost home sales.”

Mr. Prashant Khandelwal, CEO – Agami Realty
“We welcome the RBIs decision to keep the repo rate unchanged as it will provide a major boost to the housing sector. By maintaining a status quo we can expect more home buyers to come forward and buy their desired home. We look forward to continued support from the government in terms of industry friendly policies that will help sustain growth of the sector.”

Mr. Rohan Khatau, Director, CCI Projects
“The RBIs decision to keep the repo rate unchanged is a good move as it will curb inflation and drive housing demand. This comes at a time when market sentiments are robust coupled with high expectations given the approaching festive season. We hope the government considers bringing down stamp duty rates which will have a positive impact on home buyer sentiments and bring much needed relief to the home buyer.”

Mr. Vivek Mohanani – MD & CEO, Ekta World
“The Indian economy has demonstrated remarkable strength and resilience in the face of global challenges. The RBI’s choice to uphold the current stance for the third consecutive occasion was a predictable decision aimed at prioritizing stability. Opting for another increase in the repo rate by the RBI would not have been favorable for the real estate sector, given that home loan interest rates are already increased. Any additional escalation in policy rates could have significantly impacted the sentiments of potential buyers and their ability to afford homes. This, in turn, might have restrained the demand as well. It would be more preferable to see a further reduction in interest rates in the near future to enhance overall market confidence and create a more appealing environment for prospective home buyers.”

Mr. Himanshu Jain, VP – Sales, Marketing and CRM, Satellite Developers Pvt. Ltd. (SDPL)
“Considering the existing market circumstances and inflationary pressures, the move by the RBI was anticipated to steer the economy in the right direction and maintain a stable financial environment. Escalating property costs had already compounded the challenges for those looking to purchase homes. However, the RBI’s choice to abstain from another repo rate hike has provided a big respite to prospective homebuyers. Furthermore, individuals aiming to purchase their first home often consider it as a significant investment, and this move by the RBI is expected to positively influence their decision-making process.”

Dr. Sachin Chopda – Managing Director, Pushpam Group
“We welcome the RBI’s decision of keeping the key rates unchanged amid the rising inflation. This would encourage the prospective homebuyers to still close-in on their property investments. In the last couple of years, we have witnessed a lot of investment in real estate as it has provided the investors with more value for their money and it has also become an attractive asset class when compared to other investment options.”

Mr. Samyak Jain – Director, Siddha Group
“The RBI’s choice to keep its key policy rates unchanged for the third consecutive occasion was anticipated. This decision arrives amidst escalating property prices, which is already adding a huge financial burden to the end consumer. Although the decision might not have an immediate impact on the prospective homeowners, but it does offer some stability to the real estate sector. Consequently, it could potentially motivate several homebuyers who were actively in pursuit of their dream home. We eagerly anticipate governmental involvement, possibly through the reduction of stamp duty rates, which would offer relief to homebuyers and alleviate their financial strain even more.”