The real estate industry praised the Reserve Bank of India's (RBI) decision to maintain key interest rates unchanged. Prashant Sharma, President at Naredco Maharashtra, commented on the move, saying, "We welcome the RBI's decision to leave the policy repo rate constant at 6.5%. This decision shows a cautious but stable stance to monetary policy in the face of global economic uncertainty."
"In the real estate sector, interest rate stability is critical for maintaining buyer confidence and ensuring steady demand, particularly in the housing segment," said Rajeev Ranjan, Co-founder and CEO of The Mentors Real Estate Advisory Pvt Ltd, while applauding the decision.
According to Shraddha Kedia-Agarwal, Director of Transcon Developers, "We commend the RBI's decision to maintain the policy repo rate at 6.5 percent." She acknowledged the real estate sector's tenacity in the face of altering economic conditions, while calling interest rate stability "a positive sign for both developers and homebuyers."
Rohan Khatau, Director of CCI Projects, described the decision as a "prudent step," saying, "The focus on controlling inflation to support growth is commendable because it will foster a favourable environment for the real estate sector, enabling growth and stability."
Samyak Jain, Director of the Siddha Group cited, "It reflects a positive approach towards sustaining economic growth while keeping inflationary pressures in check."
Himanshu Jain, Vice President of sales, marketing, and CRM at Satellite Developers Private Limited (SDPL), also praised the decision, stating it "aligns with our economic growth policies."
Industry experts anticipate that the move will help to sustain the sector's growth.
Anuj Puri, CEO of Anarock Group, feels that the stable repo rate, combined with the changes to long-term capital gains (LTCG) tax rates, will benefit the industry as a whole."Keeping interest rates stable provides constancy in borrowing costs, encouraging more ambitious homebuyers to contemplate taking the jump - and thereby driving demand in the housing market. With loan rates being stable, EMIs will be reasonable for present and prospective homeowners, potentially leading to a rise in property sales, particularly in the price-sensitive affordable category," Puri said. The action is expected to have an impact on borrowing costs and investor sentiment in the industry.
