The Reserve Bank of India’s decision to maintain the repo rate steady for the ninth consecutive time signals a period of sustained financial stability and is being welcomes wholeheartedly by developers and real estate leaders.
This move is set to influence various facets of the real estate market, shaping both current dynamics and future trends.
Manoj Gaur, Chairman of CREDAI National and CMD of Gaurs Group, reflects on the RBI’s decision, “For the ninth consecutive time, RBI has maintained the status quo on the repo rate. This aligns well with the country’s economic growth projections and will propel infrastructural development.
“It also signals long-term stability and augurs well for the real estate sector. However, the affordable housing sector development is lagging, and given the huge unmet demand, this is an area of concern, and we hope that RBI will take it into account in the future.”
Rajjath Goel, Managing Director of MRG Group, highlights how stable borrowing costs can influence real estate investments.
“The continued stability in the repo rate is a clear signal of a stable economic environment, which encourages investment in real estate. Lower borrowing costs make it more feasible for developers to initiate new projects and for buyers to invest. However, a modest rate cut could have provided an additional boost, particularly in stimulating further investment and development.”
Harinder Singh Hora, Founder Chairman of Reach Group, commends the RBI’s decision, saying, “We commend the RBI’s decision to maintain the repo rate. This strategic move is anticipated to positively impact commercial real estate growth by ensuring stable loan interest rates. Potential buyers in these markets will benefit from not having additional financial pressures, fostering a more conducive environment for investment. This decision is poised to elevate the sector, paving the way for new project launches in emerging areas.”
Uddhav Poddar, Managing Director of Bhumika Group, emphasizes the broader economic context.
“The RBI’s decision reflects confidence in the country’s economic resilience. For the real estate sector, this stability offers a foundation for strategic planning and growth. Developers and investors should leverage this environment to adapt and innovate, ensuring that they remain competitive in a dynamic market.”
Prasoon Chauhan, Founder & CEO of Aurika Homes, discusses the potential impact on housing demand.
“The stability in the repo rate, combined with recent budgetary measures to promote urban housing, creates a favorable environment for growth in the real estate sector. However, inflation remains a concern that could impact affordability. Addressing inflation effectively will be crucial for sustaining growth and meeting the growing demand for housing.”