In a move that has brought relief to home buyers, the Reserve Bank of India (RBI) has decided not to increase the repo rates.
This decision has a positive impact on the housing sector, as the burden on home buyers’ pockets will not increase.
If you are currently paying the EMI for your house, you can continue with the same installment amount. The real estate industry views this decision as favorable for the housing sector.
Expected Increase in Housing Demand
Industry experts are hopeful that the RBI will consider reducing the repo rate in the next monetary policy review, which will further stimulate the demand for homes.
The repo rate has been maintained at 6.5 percent in the latest announcement. Boman Irani, National President of CREDAI, expressed optimism that the momentum in the demand and supply of houses will continue.
Inflation at 18-Month Low
Irani highlighted that inflation is currently at an 18-month low, providing the Reserve Bank with room to potentially lower the repo rates in future MPC meetings. Such a move would foster the growth of all industries.
Need for Additional Announcements
While lauding the RBI’s decision, NAREDCO President Rajan Bandelkar emphasized the need for additional announcements to further encourage the housing sector, which has been performing well for the past two years.
Niranjan Hiranandani, Vice Chairman of NAREDCO, mentioned that the unchanged interest rates during the festive season will boost sales.
Positive Impact on Residential Sector
Anuj Puri, Chairman of real estate consultancy Anarock, stated that the decision to maintain the repo rate will sustain the pace of home sales.
The residential sector has shown strong performance in 2023, with over one lakh units sold in the first quarter across seven major cities, reaching 1.14 lakh units.
Expert Advice
Pradeep Aggarwal, Chairman of realty company Signature Global, believes that the RBI’s decision will support the housing market and benefit home buyers.
Atul Bansal, Director-Finance at Omaxe Ltd, expressed hope for a policy rate reduction in the upcoming review meeting.
Shishir Baijal, Chairman and Managing Director of Knight Frank India, stated that the repo rate status quo will help home buyers make positive decisions.
EMI Remains Unchanged
Anurag Mathur, CEO of Savills India, assured that the monthly installment (EMI) for housing loans will remain unchanged. This stability will sustain demand across various housing categories.
