The real estate majors welcomed the Reserve Bank of India’s (RBI) move to keep its key rates unchanged.
Speaking about the development, Prashant Sharma, president of Naredco Maharashtra, said, “We welcome the RBI’s decision to keep the policy repo rate unchanged at 6.5 per cent. This decision reflects a cautious yet stable approach to monetary policy amidst global economic uncertainties.”
“In the real estate sector, stability in interest rates is crucial for maintaining buyer confidence and ensuring steady demand, particularly in the housing segment,” said Rajeev Ranjan, co-founder and chief executive officer of The Mentors Real Estate Advisory Pvt Ltd, while praising the decision.
Shraddha Kedia-Agarwal, director at Transcon Developers, quoted, “We commend the RBI’s decision to maintain the policy repo rate at 6.5 per cent.” She recognised the resilience shown by the real estate sector amidst fluctuating economic conditions while calling the stability in interest rates “a positive sign for both developers and homebuyers.”
Calling the decision a “prudent step,” Rohan Khatau, director of the CCI Projects, stated, “The focus on controlling inflation to support growth is commendable as it will foster a favourable environment for the real estate sector, enabling growth and stability.”
Samyak Jain, director at the Siddha Group, stated that the stand “reflects a positive approach towards sustaining economic growth while keeping inflationary pressures in check.”
Himanshu Jain, vice president – sales, marketing and CRM, Satellite Developers Private Limited (SDPL), also appreciated the decision, saying it “aligns with our economic growth policies.”
The industry experts are expecting the move to continue the growth momentum in the sector.
Anuj Puri, chief executive officer of Anarock Group, believes that the unchanged repo rate coupled with the amendments in long-term capital gains (LTCG) tax rates will boost the industry overall. “Maintaining interest rates offers consistency in borrowing costs, which will prompt more aspiring homebuyers to consider taking the plunge – and thus drive demand in the housing market. With interest rates staying steady, EMIs will remain manageable for current and potential homeowners, potentially leading to increased home sales – particularly in the price-sensitive affordable segment,” said Puri.
The move is expected to impact factors like borrowing costs and investment sentiments within the industry.
Sharma said, “We hope that this decision will further stimulate demand in the housing market, particularly in the affordable and mid-segment categories, which are crucial for the overall development of the real estate industry.”
Furthermore, Chivukula urged the government to consider further supportive measures that can enhance liquidity and provide long-term stability to the sector. “The focus should be on boosting consumer sentiment, which will ultimately drive growth in real estate and allied industries,” he added.
First Published: Aug 08 2024 | 3:52 PM IST
