It is right to keep the repo rate unchanged, but the current rate is a concern for the affordable housing segment: Real estate experts

New Delhi. The real estate sector has welcomed the decision of the Reserve Bank of India (RBI) to keep the policy rate repo at 6.5 per cent for the third time in a row. Real estate experts say this move will help in controlling inflation while giving a boost to economic growth. However, some say that the current interest rates are still very high and this is a cause of concern for the affordable housing segment. Real estate consultant CBRE Chairman and CEO (CEO) Anshuman Magazine said, “We welcome the RBI’s decision not to change the repo rate. The move is expected to provide relief to the housing sector given the high interest rate since the successive rate hikes last year. This will help in controlling inflation along with giving impetus to economic growth.

NAREDCO National President Rajan Bandelkar said, “RBI’s decision to maintain status quo on repo rate is a very important step for the real estate sector. The stability in the interest rate will provide relief to the developers who are going through a difficult economic scenario. ” He said, ”No change in the rate will help in working on long-term projects and executing them. Along with this, this decision also coincides with the need to bring stability in the region. This will encourage a positive environment. “However, we expect the central bank to remain mindful of emerging market dynamics and continue to support growth-oriented measures,” Bandelkar said.

CREDAI Chairman Manoj Gaur said, “RBI not increasing repo rate to maintain balance is good for home buyers and real estate developers. This gives an assurance to the sector that the central bank will not take a tough stance on interest rates anytime soon. If the economy continues its growth, there could be a rate cut in future. “However, the current rate of 6.5 per cent is still very high and a cause of concern for the affordable housing segment,” he added. Shishir Baijal, chairman and managing director of Knight Frank India, said, “We are happy that the RBI has kept the repo rate unchanged for the third time in a row.” He said, “We remain cautious on the housing market, especially the affordable and the middle sections which are sensitive. There has been an effect of the previous rate hike on them. Keeping the policy rate at the same level for a long time will help the housing market.

Nitin Bavisi, Chief Financial Officer (CFO), Realty & Infra India Limited, said, “The overall economic conditions in India remain positive for the economy, keeping in view the growth in demand and the target of bringing down inflation to 4 per cent. RBI’s move to maintain status quo on the repo rate is expected and welcome.” Saransh Trehan, Managing Director, Trehan Group said, “Keeping the repo rate unchanged will further reduce the rate of inflation, which is undoubtedly coming down.” Pradeep Agarwal, Founder and Chairman, Signature Global (India) Ltd. said, “RBI’s decision to keep the current interest rate unchanged is a promising step towards reducing the financial burden on potential home buyers. ,

Navraj Group Managing Director Naveen Kumar said, “No change in the repo rate by the Reserve Bank of India for the third time is beneficial for the real estate sector. This gives it the confidence to attract investors and promote sustainable investment ventures. The decision to keep the repo rate unchanged brings down the cost of credit for home buyers and developers. Kushagra Ansal, director, Ansal Housing, said, “Keeping the repo rate unchanged is a commendable step. This will prove to be highly favorable for the markets.” Rajesh K., Managing Director, Axiom Landbase. Saraf said, “Not changing the repo rate is a positive decision by the Reserve Bank of India. The decision comes as a sigh of relief for the real estate industry, which has experienced a remarkable revival in the past several months. The positive momentum is likely to be sustained as a result of this decision. We expect a cut in the repo rate in the coming months.

Mohit Goyal, Managing Director, Omaxe Limited said, “The decision to keep the repo rate unchanged reflects the improvement in the country’s economic fundamentals and confidence in India’s economic growth. This decision will have a positive impact on the residential and commercial real estate segment.” Vikas Garg, Joint Managing Director, Ganga Realty said, “The RBI decision will help stabilize housing demand and maintain a positive balance in the property markets Radhika Rakesh Garg, director, Rajdarbar Realty, said, “After six consecutive hikes, RBI’s decision of not changing the interest rate twice in a row is welcome. From developers to home buyers and financial institutions, every stakeholder in the real estate sector will benefit from this. For the third time, the policy rate repo has been retained at 6.5 percent. This means that there will be no change in monthly installment (EMI) on home, vehicle and other loans.

Disclaimer: IndiaTheNews has not edited this news. This news has been published from PTI-language feed.

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