The Reserve Bank of India (RBI) has kept repo rates at 6.5 per cent for the sixth consecutive time. Repo rate means the interest rate at which the RBI provides loans to other banks. While home loan borrowers were hoping for a rate cut that would have reduced their EMIs, the RBI decided to maintain the status quo. Experts believe that a stable repo rate will maintain the residential momentum.
Anuj Puri, Chairman, ANAROCK Group, said: “As the fundamentals of the Indian economy remain strong despite all the global headwinds and inflation is well controlled, the RBI has once again decided to maintain policy rates. repurchase unchanged at 6.5%, thus extending the holiday bonanza he gave home buyers in his last two policy announcements. Home buyers therefore retain their home loan interest rate advantage relatively Considering current trends, the housing market has been unstoppable and unchanged home loan rates will help maintain the overall positive consumer sentiment. With house prices rising in all 7 major cities over the last one year, this respite from the RBI is a clear plus for homebuyers.”
Puri added: “Going forward, we can expect the momentum in home sales to continue, helped significantly by unchanged repo rates which will keep home loan interest rates attractive and also signal the current strength of the economic outlook.” of India”.
Vimal Nadar, Senior Research Director at Colliers India, said, “Stability not only provides continuous relief to homebuyers in the form of predictable EMIs, but also helps real estate developers have greater confidence in the costs of short-term financing. Stability in the real estate ecosystem bodes well for healthier balance sheets and should give a further boost to sales in the residential segment. The anticipation of future repo rate cuts and the projected GDP growth rate of 7% for fiscal year 2024-25 adds credibility to the conviction of strong performance. by the real estate sector in the coming quarters.”
NAREDCO National President G. Hari Babu said the RBI’s decision instils confidence in the country’s economic foundation and growth trajectory. “With an estimated GDP growth of 7% in FY24, there is an optimistic outlook for the coming year. The unchanged repo rate will stimulate demand in the real estate sector, benefiting both residential and commercial segments. Despite of this stability, it is worth noting that the current interest rate is at its highest level in the last four years. Therefore, we urge that this factor be taken into account in the next review meeting. Such efforts will support the promotion of ‘affordable housing’ and the government’s crucial ‘affordable housing for all’ initiative.”
Prasoon Chauhan, Founder and CEO of JustHomz, said stability in the repurchase rate, coupled with consistent sales in the mid-income and premium segments, benefits homebuyers and encourages developers to embark on new projects.
According to ANAROCK Research, in 2023 average house prices increased between 10% and 24% in the top 7 cities, with Hyderabad recording the highest increase of 24%. The average prices in these markets stood at approximately Rs 7,080 per sq ft, while in 2022 they were approx. Rs 6,150 per sq ft – a collective increase of 15%.