Unchanged home loan rates to increase consumer confidence, boost home buying: Experts
In a bid to tame inflation and sustain economic growth, the Reserve Bank of India (RBI) on Friday decided to keep the repo rate unchaged at 6.5% for the fifth time in a row, which is good news for both homebuyers and real estate.
According to industry experts, this is an extension of the festive bonanza that the RBI gave to the homebuyers in its last policy announcement. It gives homebuyers yet another opportunity to make cost-optimized home purchases.
Commenting on the MPC announcemnet, Anuj Puri, Chairman, ANAROCK Group, said, “If we consider the present trends, the housing market is on a bull run and unchanged home loan rates will only add to the overall positive consumer sentiments. Additionally, given that housing prices have escalated across the top 7 cities in the last one year, at least the unchanged home loan rates will give some relief to the homebuyers.”
As per ANAROCK Research, average housing prices have increased anywhere between 8% and 18% across the top 7 cities in the last one year with Hyderabad recording the highest 18% jump. The current average prices in the top 7 cities stand at approx. Rs 6,800 per sq ft while in 2022 they stood at nearly Rs 6,105 per sq ft, thus increasing by 11% collectively in the top 7 cities.
“Going forward, we may expect the momentum in housing sales to continue in the wake of the unchanged repo rates coupled with the resultant stable home loan rates and positive economic outlook on India,” added Puri.
Also Read: RBI holds key policy rates: How it will impact exiting and new home loan borrowers
Shishir Baijal, Chairman and Managing Director, Knight Frank India, said, “Steady policy interest rates and maintained policy stance was widely expected and aligns with the trajectory
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