Experts from the real estate sector have praised the Reserve Bank of India’s decision to keep lending rates steady, highlighting its positive impact on demand and affordability.
However, some concerns remain regarding potential inflationary pressures in the coming months, experts said.
Samantak Das, Chief Economist and Head of Research and REIS (India), JLL, noted the country’s strong economic growth, reflected in the upward revision of the RBI’s GDP forecast to 7 per cent.
He emphasised the record sales witnessed in the residential market, with January-September sales reaching a 15-year high.
Das said healthy macroeconomic fundamentals and some normality in the global economy next year are likely to support a repo rate reduction in 2024.
He expressed confidence that steady interest rates would further support the momentum in the residential market.
Niladri Bhattacharjee, Partner at Grant Thornton Bharat, acknowledged the potential for the high growth rate to trigger inflationary pressures, specifically impacting sectors like metals and mining.
While recognising the short-term benefit for the industry of holding rates, Bhattacharjee warned that inflation remains a concern in the long run.
Sushil Mohta, President of CREDAI-West Bengal, welcomed the unchanged repo rate, highlighting its positive impact on homebuyers by avoiding further pressure on home loan costs.
He acknowledged the challenges faced by the housing sector due to previous rate increases and expressed hope for a future repo rate reduction that would further benefit the sector.
Shishir Baijal, Chairman and Managing Director of Knight Frank India, acknowledged the expected nature of the decision to maintain rates, aligning with global trends.
However, he
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