Expect stability in interest rates for prospective homebuyers in short term: Developers
In its post-election RBI policy announcement, the MPC opted to maintain the repo rate at 6.5% for the eighth successive time. The RBI’s cautious stance reflects acknowledgment of persistent food inflation alongside a robust growth trajectory, evident in the revised growth forecast for FY25, now elevated to 7.2% from 7%.
“This move by the RBI ensures stability in interest rates for prospective homebuyers in the short term. Nevertheless, the potential necessity for a downward revision of the repo rate remains pivotal for fostering future sectoral growth, particularly amidst mounting concerns over escalating property prices impacting a significant portion of genuine homebuyers across India,” said Dhruv Agarwala, Group CEO, Housing.com & PropTiger.com.
Developers say that by keeping the inflation projection steady and maintaining the repo rate at 6.5%, the central bank is signaling its dedication to bolstering the economy and maintaining stability. This is particularly encouraging for both luxury and affordable housing developers.
Also Read: Your home loan EMIs may not come down soon as RBI keeps repo rate unchanged
G Hari Babu, National President of NAREDCO, said, “For the average homebuyer or developer, this is excellent news. It implies that borrowing costs will stay relatively affordable, potentially prompting more individuals to consider property investment. Moreover, with core inflation easing and fuel prices decreasing, consumers may find themselves with extra funds to allocate towards a down payment or home enhancement venture.”
Additionally, “the commitment to stability extends to sustainable practices within the housing sector. Developers are increasingly embracing environmentally-friendly initiatives, which not
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