As expected, the Reserve Bank of India (RBI) maintained its key interest rates unchanged on June 7, 2024. This decision has been welcomed by real estate experts, as it is anticipated to have a stabilizing effect on the real estate sector in India. With the repo rate remaining steady at 6.50 per cent for the eighth consecutive policy meeting, the borrowing costs are expected to stay the same, making home buying more accessible.
Experts such as Boman Irani, president of CREDAI, and Anshuman Magazine, Chairman & CEO of CBRE, have expressed optimism towards the decision. They believe that keeping the repo rate unchanged will benefit future homeowners by ensuring that borrowing costs remain affordable, thereby boosting consumer spending.
Moreover, G Hari Babu, the National President of NAREDCO, highlighted that by maintaining the inflation projection and the repo rate, the RBI is showcasing its commitment to strengthening the economy and ensuring stability. This move is perceived as encouraging for both luxury and affordable housing developers in the country.
In addition, industry leaders like Sanjay Dutt, MD and CEO at Tata Realty & Infrastructure Ltd, have emphasized the importance of the RBI’s decision in light of market dynamics and homebuyer sentiment. They anticipate lower interest rates later in the year, following the European Central Bank’s recent policy adjustments.
The decision to uphold the interest rates was further validated by experts like Anurag Mathur, CEO of Savills India, who stated that the stability in RBI’s policy fosters consumer confidence and supports the thriving economy, especially the housing sector. The real estate market in major cities across India is witnessing strong demand, making the unchanged repo rate a welcome move.
The insights shared by industry leaders and experts reflect a positive outlook for the real estate sector in India, with expectations of continued growth momentum. This decision by the RBI is seen as a step towards stabilizing the housing market, enhancing affordability, and encouraging investment in the real estate sector. Overall, the unchanged monetary policy is poised to benefit both homebuyers and developers, contributing to the economic progress of the country.