RBI status quo on interest rates will boost demand for real estate sector: CEOs
Major real estate companies welcomed the Reserve Bank of India (RBI) decision to leave key interest rates unchanged.
Commenting on the development, Prashant Sharma, President, Naredco Maharashtra, said, “We welcome the RBI’s decision to keep the policy repo rate unchanged at 6.5 per cent. This decision reflects a cautious but steady approach to monetary policy amid global economic uncertainties.”
“In the real estate sector, stability in interest rates is crucial to maintain buyer confidence and ensure stable demand, especially in the residential segment,” said Rajeev Ranjan, co-founder and CEO, The Mentors Real Estate Advisory Pvt Ltd, who lauded the decision.
Shraddha Kedia-Agarwal, Director, Transcon Developers, said, “We commend the RBI’s decision to maintain the policy repo rate at 6.5 percent.” Acknowledging the resilience of the real estate sector amid fluctuating economic conditions, she termed the stability in interest rates “a positive sign for both developers and homebuyers.”
Rohan Khatau, managing director of CCI Projects, termed the decision a “sensible move” and said: “The focus on controlling inflation to support growth is commendable as it will create a conducive environment for the real estate sector, enabling growth and stability.”
Samyak Jain, managing director of Siddha Group, said the stock market rally “reflects a positive approach to sustaining economic growth while keeping inflationary pressures in check.”
Himanshu Jain, vice president – sales, marketing and CRM at Satellite Developers Private Limited (SDPL), also welcomed the decision, saying it is “in line with our economic growth policy.”
Industry experts expect this move to continue growth in the sector.
Anuj Puri, CEO, Anarock Group, believes that the unchanged repo rate coupled with the changes in long-term capital gains (LTCG) tax rates will give a boost to the sector as a whole. “Maintaining interest rates offers consistency in borrowing costs, which will encourage more aspiring homebuyers to take the plunge – thereby boosting demand in the housing market. With stable interest rates, EMIs remain manageable for current and prospective homeowners, potentially leading to more home sales – especially in the price-sensitive affordable segment,” Puri said.
This move is expected to impact factors such as borrowing costs and investment sentiment within the sector.
Sharma said: “We hope that this decision will further stimulate demand in the housing market, especially in the affordable and mid-market categories, which are crucial for the overall development of the real estate sector.”
Furthermore, Chivukula urged the government to consider further supportive measures that can enhance liquidity and provide long-term stability to the sector. “The focus should be on boosting consumer confidence, which will ultimately drive growth in real estate and related industries,” he added.
First print: Aug 08, 2024 | 3:52 PM IST