RBI A decision from RBI has made millions of home buyers happy. A big decision was taken in the meeting of the Monetary Committee of the Reserve Bank of India. The Reserve Bank of India has not made any change in the policy repo rate for the eighth time in a row. RBI Governor Shashikant Das announced this on Friday. This means that there will be no increase in the EMI of people’s home loan. The real estate market is booming due to this decision. Along with real estate businessmen, home buyers have also welcomed this decision of RBI. They say that this decision will definitely benefit millions of people. With the strengthening of the sector, there will be an emphasis on creating more employment opportunities. Also, people thinking of buying a house will have to pay less EMI of home loan. Let us know how the representatives of the industry have reacted to this decision of RBI.
Benefits to home buyers
Sarthi Goyal, CEO, Civitech Group said, “Stability in the repo rate can ensure that home loan interest rates remain low, making it affordable for prospective homebuyers. It will also ensure stability in loan borrowing rates, allowing both developers and homebuyers to benefit from increased confidence and predictability in the market.”
It is a good decision
According to Himanshu Garg, Director, RG Group, “This is a good decision. Since the repo rate directly affects loan rates, the unchanged repo rate means that existing loans will remain benchmarked to the higher repo rate of 6.50, and new loans are likely to be given at lower rates than old loans. This will benefit both current and prospective homebuyers.”
Beneficial decision for helmet industry
Rajiv Kapur, MD, Steelbird said, “The Reserve Bank of India has maintained the inflation forecast and kept the repo rate steady at 6.5%, which is a positive sign for the helmet industry. This economic stability benefits both manufacturers and consumers. For manufacturers, a stable repo rate means no change in borrowing costs, which will ease their operations and investment planning. This forecast is especially important for industries like helmet manufacturing, where precision and quality are of utmost importance. For consumers, a stable inflation forecast suggests that prices will not jump much, which may encourage people to invest in safety gear like helmets. With core inflation under control and potential savings from reduced fuel prices, people can more easily spend money to buy safety gear.
It would have been better if there was a slight reduction
Manoj Gaur, President, CREDAI NCR and CMD, Gaur Group, says, “While a slight reduction in the repo rate could have boosted the real estate sector, we welcome RBI’s decision to not change the interest rate. One area of concern is the affordable housing sector, which definitely needs intervention. Overall, this is a welcome decision and the real estate market, which is experiencing an unprecedented boom with unsold stock at an all-time low, welcomes the move. This decision supports the growth and stability of the sector.”
European Central Bank begins rate cuts
“While there is a decoupling going on across the Atlantic – the European Central Bank on Thursday started cutting rates – the US Federal Reserve has kept them high. Meanwhile, the Reserve Bank of India has preferred to keep rates on hold. The Fed has room to pursue tight monetary policy as growth in the US is strong, while in Europe there are growth concerns amid high inflation,” said Dharmakirti Joshi, chief economist at Crisil.
This step will reduce the financial burden
Sanjay Sharma, Director, SKA Group, said that RBI’s decision to maintain the repo rate at 6.50 percent for the eighth consecutive time is a positive step towards reducing the financial burden on potential buyers. This decision is a good step to provide a significant incentive to potential buyers in the commercial sector to go ahead with their property purchase. Certainly, RBI’s decision will give impetus to affordable and mid-range commercial projects.
There is potential for future growth
Sanchit Bhutani, MD, Group 108, says, “RBI has once again taken a commendable step by keeping the repo rate stable for the eighth consecutive time. A stable repo rate provides confidence to investors and home buyers. This stability directly impacts the growth of the real estate sector, which in turn contributes significantly to India’s GDP and future growth prospects.
Enthusiasm will increase among buyers
According to Ankush Kaul, Chief Business Officer, Ambience Group, “RBI has maintained the repo rate at 6.5% for the last 16 months. This rate has been taken into account by the real estate sector for a long time. Stabilizing the rates has created a different excitement among potential buyers and has maintained their confidence. As the festive season is approaching, this sector will encourage buyers to invest in both residential and commercial sectors.
Relief in interest rates will continue
Amit Modi, Director, County Group, says that RBI has taken a welcome step by keeping the repo rates unchanged at 6.50%. This move is beneficial for both developers and potential buyers looking to invest in the sector. Pawan Sharma, MD, Trisol Red, points out that RBI’s decision to maintain the repo rate at 6.5% is expected to lead to positive growth in the housing market. Despite rising housing costs, the unchanged home loan rates provide some relief to potential home buyers.
Increasing consumer confidence
According to Nayan Raheja of Raheja Developers, “RBI’s decision to keep the repo rate unchanged at 6.5% for the eighth time has benefited the real estate sector in many ways. Consumer confidence is the first among these. Stability in interest rates increases confidence, making home buying more attractive and affordable. Apart from this, real estate becomes a more attractive investment compared to volatile options, which promotes domestic and foreign investment. Kushagra Ansal, Director, Ansal Housing, believes that RBI’s decision to maintain the repo rate will have a positive effect on the residential market. Despite the rising cost of housing, stable home loans provide some relief to potential buyers. As a result, stable interest rates benefit both buyers and developers, increasing consumer confidence.
RBI’s concrete steps towards the economy
Ashvinder R. Singh, Co-Chairman CII NR Committee Real Estate & CEO Bhartiya Urban said, “RBI’s decision to maintain the repo rate at 6.50% is a strategically sound move that reinforces stability and confidence in the real estate market. This policy stance not only maintains the current growth trajectory but also enhances affordability for potential home buyers and commercial real estate investors. Ashvinder Kumar, Pyramid Infratech says, “RBI’s decision to maintain the repo rate at 6.50% will benefit developers and potential buyers investing in the realty sector. The sector has already been performing well over the last few years, and the decision to keep the repo rate stable will benefit both potential buyers and developers.
Real estate market will get support
G Hari Babu, National President, NAREDCO said, “The central bank is signalling its commitment to strengthen the economy and maintain stability. This is particularly encouraging for both luxury and affordable housing developers. This stability supports the real estate market, making housing more affordable and increasing the confidence of home buyers. This effort by the central bank will encourage investors in the sector to make long-term investments in housing. We urge the RBI to consider our appeal in its upcoming review meeting. Lower interest rates encourage developers and home buyers alike with better liquidity, thereby strengthening the real estate market and all related sectors.”
If there is further reduction then you will get benefit
Piyush Lohia, Director, Lohia Global, said, “In recent sessions, the repo rate has consistently provided a stable base for real estate market growth. Stability or further easing of the rate by the RBI will be a significant boost, increasing buyer confidence and making home loans more affordable. This is important to maintain the momentum we have seen in home buying post the pandemic, especially in emerging markets of tier 2 cities. We are particularly paying attention to how the RBI adjusts to ongoing inflationary pressures and their impact on borrowing costs. A balanced policy that supports economic growth while managing inflation is essential for the health of the real estate sector. We expect continued measures or even strategic cuts in interest rates to promote a more favorable environment for both home buyers and developers.”
Ayush Lohia, CEO of Lohia, said, “We welcome RBI’s decision to keep the repo rate unchanged. Stable interest rates are important for investment and growth in the green technology sector.”
Good decision for senior citizens
Anantharam Varayur, Co-Founder, Manasum Senior Living said, “The RBI Governor’s decision to maintain the inflation forecast and retain the repo rate at 6.5% is particularly encouraging for the seniors’ housing projects sector. With core inflation moderating and fuel prices stabilising, there is a positive outlook for the economy, which may boost confidence among seniors and their families to invest in such projects. This forecast in interest rates may attract more investments in seniors’ housing projects, as developers can plan their finances more effectively. Moreover, the RBI’s commitment to achieving the 4% inflation target and ensuring price stability provides a strong foundation for continued growth in the sector. As the economy continues to recover, demand for seniors’ housing options is likely to increase, offering promising prospects for these projects in the long term.”
This is why this decision was taken
Pradeep Aggarwal, Founder & Chairman, Signature Global (India) Ltd. said, “RBI has kept rates on hold for the eighth consecutive day, possibly due to relatively high food inflation despite CPI being in the target range. Strong GDP growth in FY24 is also expected to drive this decision. Nevertheless, if inflation continues to ease, economists expect a rate cut of 25-50 basis points in the second half of the financial year. Lower interest rates will further benefit the real estate sector, which is already seeing strong demand among end-users. We expect this strong demand to remain strong for the next few years, especially in cities like Gurugram, where infrastructure is developing rapidly.”
Demand for homes is strong
Mohit Jain, Managing Director, Krishumi Corporation said, “Demand for homes remains strong, especially in the luxury and high-end segments. This strong trend will continue with RBI keeping policy rates on hold. But with the possibility of a rate cut, the real estate sector is expected to see a further boost if and when the rate cuts happen. The mid-range and premium housing segments will benefit the most from any future rate cuts.”
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