Continued pause on policy rates bodes well for housing market: Developers

financialexpress.com:

As broadly expected, the Reserve Bank of India (RBI) maintained status quo on key policy rates in its MPC review meeting on Friday, reaffirming its withdrawal policy stance. The move bodes well for the housing market in India and will reinforce confidence among potential homebuyers.

Hailing the RBI decision to maintain the repo rate at 6.5% for the fifth time in a row, developers said the RBI decision to hold interest rates steady, coupled with favorable inflation expectations, mirrors a strategic stance fostering economic stability.

“This move comes as the real estate sector in India has already been experiencing solid demand, and now, with enhanced buyer confidence and an inviting investment environment, we can expect an even stronger wave of growth and prosperity in the housing market in 2024,” said Ankush Kaul, Chief Business Officer at Ambience Group.

Avneesh Sood, Director, Eros Group, said, “With a projected GDP growth of 7% in 2023-24 and a positive shift in rural demand, the unchanged repo rate ensures stability and affordability in the property market. As a real estate developer, we view this decision favorably, anticipating sustained momentum and increased homebuyer confidence. Despite global economic uncertainties, India’s real estate sector remains resilient, supported by robust capacity utilization and urban demand.”

Also Read: RBI holds key policy rates: How it will impact exiting and new home loan borrowers

Builders believe the RBI move to hold the key rates will attract a positive momentum in the housing market.

Rajjath Goel, Managing Director, MRG Group, said, “Amidst the escalating housing prices, the unchanged home loan rates will provide some relief to homebuyers. So, we expect both buyers and