The housing market in India is expected to see continued strong demand in the coming months, thanks to the Reserve Bank of India’s decision to keep the repo rate unchanged. Real estate developers are optimistic about the stability in mortgage rates and are hopeful for a rate cut in the next monetary policy committee meeting.
Commenting on the RBI policy, CREDAI President Boman Irani highlighted that maintaining the repo rates at 6.5% would help keep borrowing costs for homebuyers stable. He expressed hope for a rate cut in the future, given the favorable macro-economic dynamics. With the festive season approaching, Irani expects the housing sales momentum to continue into the final quarters of the year.
NAREDCO President G Hari Babu also emphasized the stability created by the central bank’s decision, stating that steady borrowing costs make home loans more affordable. This affordability is likely to boost demand in the housing market, especially during the upcoming festive season. Developers can now plan projects confidently, knowing that financing conditions will remain favorable.
Anarock Chairman Anuj Puri echoed these sentiments, noting that maintaining interest rates offers consistency in borrowing costs. This consistency is expected to prompt more aspiring homebuyers to enter the market, thereby driving demand. With interest rates remaining steady, EMIs will remain manageable for current and potential homeowners, potentially leading to increased home sales.
Housing.com Group CEO Dhruv Agarwala highlighted that stable home loan interest rates continue to support robust demand in India’s housing sector. Real estate data analytic firm PropEquity CEO Samir Jasuja emphasized the importance of a reduction in the benchmark interest rate to further boost the real estate sector.
Vestian CEO Shrinivas Rao noted that the steady monetary policy over the past one-and-a-half years has ensured stability in the real estate sector, boosting demand across all asset classes. Developers such as Krisumi Corporation Managing Director Mohit Jain and Sterling Developers CMD Ramani Sastri welcomed the decision, stating that it fosters consumer confidence and offers continuity and predictability to the real estate sector.
As luxury housing gains momentum, developers like Raheja Developers‘ Nayan Raheja and Alphacorp’s Santosh Agarwal emphasized the importance of stability in interest rates for both developers and homebuyers. Siddha Group director Samyak Jain and 4S Developers MD Sanjoo Bhadana highlighted the potential for a reduction in the benchmark interest rate in the future to further boost market sentiments.
InvestoXpert Founder & MD Vishal Raheja emphasized the importance of keeping the repo rate status quo for developers to retain current project financing costs. Overall, the decision by the Reserve Bank of India to maintain the repo rate unchanged has been well-received by the real estate industry, providing continued stability and optimism for the market.