RBI’s move balanced, but more deduction in repo rate to speed up the demand of houses is necessary: Real Estate
Reserve Bank of India (RBI) On Wednesday, the major policy rate repo was decided to maintain the major policy rate repo at 5.5 percent amid uncertainty over the US fee. Reacting to this, real estate companies and developers say that the Reserve Bank’s decision to keep the policy rate (repo) unchanged reflects a balanced approach, but should consider reducing the repo rate during festivals to promote the sales of homes. He also said that earlier cuts in policy rates have helped to maintain the demand for residential properties.
Demand for houses increased due to cheap home loan
National President of CREDAI (Confederation of Real Estate Developers Association of India) Shekhar ji Patel Said that the decision of the central bank reflects a balanced approach. It aims to support the economy amidst global uncertainties and emerging scenario of international trade agreements and dialogues. He said that the reduction in the earlier interest rates has played an important role in maintaining strong demand in the housing sector. Chairman of National Real Estate Development Council (Nareedco), the top body of the real estate sector Yes. Hari Babu Said that it is a welcome step to maintain the repo rate at 5.5 percent in the current financial year of the Reserve Bank of India. However, we believe that the repo rate should be brought below 5.5 percent to further strengthen the real estate sector and RBI should consider reducing it in the next MPC meeting.
Loan and cheap demand for homes will increase
Space India CMD Rakesh Yadav Said that the repo rate has been cut three times before the RBI’s policy. This has made home loans cheaper and reduced the burden of EMI on people. Both home buyers and real estate sector benefited from this. Home buyers have received a gift of cheap loans. At the same time, the demand for houses has increased due to the loan being cheaper. If the next monetary policy which will be from 29 September to 1 October, the repo rate is cut once more, then the real estate sector will get a big boost. In the festive season, there will be great help in increasing the demand of homes which will work to speed up the speed of the Indian economy.
Will strengthen market stability
Joint Managing Director of Ganga Realty, Vikas Garg Said that the decision to maintain the repo rate by RBI at 5.5% strengthens the stability in the market – which is very important for both home buyers and builders in today’s economic condition. In the luxury housing segment, where the buyers’ expectations and investment amounts are more, the interest rates are stable in the interest rates and there is a boom in the purchase. This makes it easier for long -term financial planning, causing both the common buyers and investors actively participate in the market. This decision will help maintain people’s interest in residential markets, especially cities and newly emerging areas. Overall, such a stable monetary policy gives a clear direction to the real estate sector and strengthens the region so that the area can move forward. “
Anantanarayan Varayur, co-founder of Manasum Senior Living, said that RBI’s decision to maintain the repo rate at 5.5% reflects a cautious approach to maintain a balance between growth and inflation. While the rate cuts could provide additional incentives, unchanged GDP growth forecast of 6.5% for FY26 suggests a stable economic approach.
Loan EMI reduced
Chairman of Signature Global (India), Pradeep Aggarwal Said that the RBI’s decision to maintain the repo rate at the present level reflects its balanced view of supporting economic reforms amidst stable inflation. There has been a significant decrease in the cost of taking loans after the repo rate cut for three consecutive times, and the current policy stance ensures that the interest rates remain at the affordable level. This will maintain the trust of consumers and will support the ongoing pace in major areas including real estate.
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