Repo Rate Unchanged at 6.5 %: How Real Estate Developers Reacted

Repo Rate Unchanged at 6.5 %: How Real Estate Developers Reacted

The developers also emphasized the need for intervention to support the affordable housing segment, especially as India is committed to fulfilling its housing aspirations.

ANIUpdated: Monday, June 10, 2024, 04:07 PM IST
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Reserve Bank of India | File/ Representative

For the eighth consecutive time, the RBI has decided to keep the repo rate unchanged at 6.5 per cent.

This decision, combined with optimistic GDP growth projections, massive infrastructural development, an increased pace of project launches, and robust demand, is expected to significantly boost the real estate sector.

However, while welcoming the move, developers also emphasized the need for intervention to support the affordable housing segment, especially as India is committed to fulfilling its housing aspirations.

Deepak Kapoor, Director of Gulshan Group, expressed that the Indian economy is performing well, and the GDP growth projections are highly optimistic. "We welcome the RBI's decision to maintain the status quo on interest rates. The benefits are two-fold - boosting consumption and propelling real estate sector growth, especially in the luxury residential segment," he said.

Yash Miglani, MD of Migsun Group, noted that the RBI's decision to keep the repo rate stable is a balancing act between controlling inflation and promoting economic development. "With reduced inflation and strong GDP forecasts, aligning with the real estate sector is imperative. Embracing innovation and stability will be key to unlocking new growth opportunities in the sector," he stated.

Rajjath Goel, Managing Director of MRG Group, emphasized the positive impact on potential buyers. "The Reserve Bank has reassured the real estate industry by maintaining stability in repo rates at 6.50 per centfor the eighth consecutive time, bringing relief to potential buyers.

With no adjustments made for over a year, buyers can proceed with their investments without facing rising loan interest rates. This decision alleviates financial concerns and demonstrates the authorities' commitment to controlling inflation," he stated.

Harinder Singh Hora, Founder Chairman of Reach Group, expressed optimism, saying, "These are great times for both the economy and the real estate sector, including the commercial segment. The decision by RBI to keep the repo rate unchanged will bring cheer to the market.

The world sees immense possibilities in India, and the growth trajectory is high. The GDP numbers are expected to get better, and the real estate share in the GDP percentage is rising." Uddhav Poddar, Managing Director of Bhumika Group, hailed the decision as an extremely positive step for homebuyers and investors.

"By keeping the rate stable for the eighth consecutive time, the RBI has indicated strong confidence in the real estate sector and homebuyers. This will balance inflation and inject new energy into the real estate market," he remarked.

Salil Kumar, Director of Sales & Marketing at CRC Group, highlighted the significant growth in the real estate sector in recent years. "The RBI's decision to maintain the repo rate at 6.50 per cent will positively impact the industry.

With rising housing demand, stable loan rates will foster greater confidence among buyers and developers, promoting long-term growth across residential and commercial sectors," he explained.

Sachin Gawri, Founder and CEO of RISE Infraventures, said that the RBI's decision to make no changes to the repo rate benefits the real estate sector. "This decision will prove favorable for both investors and homebuyers.

The RBI's decision indicates that the country's economy is consistently performing well. We are confident that with India's growing economic flexibility and declining inflation, there will be further reductions in the repo rate, leading to growth in the real estate sector," he commented.

Sanchit Bhutani, MD of Group 108, praised the RBI's step of keeping the repo rate steady for the eighth consecutive time. "A stable repo rate provides confidence for investors and home buyers, directly impacting the growth of the real estate sector, which significantly contributes to India's GDP and future growth prospects," he asserted.

Piyush Kansal of Royale Estate Group commended the RBI's decision to keep the repo rate unchanged at 6.5 per cent . "With the country's economy performing exceptionally well, along with good GDP growth and control over inflation, this sector is expected to continue performing well in the future. However, concerns about affordable housing and real estate development in Tier 2 and 3 cities remain. A reduction in repo rates would assist developers in realizing their housing aspirations," he noted.

Prateek Mittal, Executive Director of Sushma Group, shared that the realty sector's development has turned positive. "The increasing competition and more people investing in mid, premium, and luxury residential segments are evident.

Developers have accelerated the pace of new launches, as seen in the recent Q1 report. India is on a path of progress, and the RBI's decision to keep the repo rate unchanged will not disrupt the momentum. This decision will motivate the sector because it will relieve borrowers since their EMI will stay the same," he pointed out.

Tejpreet Singh, MD of Gillco Group, added that the decision will benefit the luxury real estate sector. "The RBI's decision to maintain the repo rate at 6.50 per centwill benefit this sector.

There has been a surge in sales in the premium and luxury segments, leading to the launch of new projects. Considering the upcoming festive season, we hope this decision will further benefit the luxury real estate sector," he said.

Mukul Bansal, MD of Motiaz, commented that the RBI's announcement of keeping the repo rates unchanged at 6.5 per cent for the eighth consecutive time is remarkable. "As interest rates stay constant, we anticipate increasing buyer confidence and continued interest in the industry.

The sector has already been performing well over the last few years, and the decision to keep the repo rate unchanged will benefit both prospective buyers and developers.

Altogether, this will increase the real estate sector's vibrancy among prospective buyers and indicates RBI's confidence in the state of the economy. This action will benefit prospective homeowners because loan interest rates won't rise," he explained.

In conclusion, the RBI's decision to hold the repo rate at 6.5 per centhas been met with widespread approval from the real estate industry. Developers are optimistic that the stability in loan rates will sustain the momentum in the sector, fostering growth and encouraging investment across various segments. However, the call for more support for the affordable housing segment underscores the need for targeted measures to ensure inclusive growth and help India achieve its housing aspirations.

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