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HomeNewsRBI’s Unchanged Interest Rate for 7th Time will boost Housing Demand

RBI’s Unchanged Interest Rate for 7th Time will boost Housing Demand

Reserve Bank of India’s decision to keep the interest rates unchanged for the seventh consecutive time is a breather for home buyers. The unchanged rates reflects in the steady EMI payment for homebuyers.

With finance experts foreseeing no change in the rates, turned true as RBI maintained a rate of interest at 6.5%. The decision is seen as a step to maintain stability in the Indian real estate market. According to real estate experts, zero change in interest rate will boost the confidence of aspiring homeowners.

This boost to homebuyers’ sentiments will increase demand for residential properties. The experts predict top seven Indian cities will witness sell of three lakh housing units in 2024.

Manju Yagnik, Vice-Chairperson of Nahar Group and Senior Vice President of NAREDCO, Maharashtra, said, The RBI’s decision to keep interest rates unchanged is the much-needed relief and advantage to homebuyers from the soaring prices of residential properties.

She also said the announcement will bring stability in the real estate market with optimistic belief of high business figures.

Developers are happy with RBI’s decision to keep the interest rate unchanged and call it a fiscal foresightedness.

Pradeep Aggarwal, Founder and Chairman, Signature Global said, “A stable and predicted repo rate unchanged for the seventh time lends credence and confidence to the average homebuyer who can be assured while taking home loans. This stability has a direct cascading effect on the growth of the real estate sector, which in turns contribute significantly towards India’s GDP growth.”

Boman Irani, President, CREDAI, expressed happiness over the decision to keep interest rate unchanged. He said, “The Central bank maintained the repo rate at 6.5% continuing its hawkish stance to keep inflation under check. However, with repo rates being an industry agonistic subject, we hope to see lower repo/interest rates later this year which will provide an impetus to not just real estate and housing demand but across industries – compounding sectoral and economic growth. Having grown 8.4% in Q3 of FY 2023/24, a rate cut in the future will help sustain this economic momentum or even accelerate it- and we expect to see repo rates being reduced in Q2 of the new fiscal year in the post-election phase. ”

This decision has set a new benchmark for investors and aspiring homeowners in the country. With stability in rates, it looks like a win-win situation for the real estate market and homebuyers.

Samantak Das, Chief Economist and Head, Research and REIS, India, JLL said, “The policy continuity foster a predictable interest rate environment, which is crucial for both homebuyers and developers. We anticipate sustained demand, especially in the mid-tier and high-income segments.”

The Indian real estate market is experiencing a bull trend with 74,000+ units sale in Q1, 2024. The number is 9% higher than that of Q1, 2023. With a curb in the inflation rate, static interest rates will be the realty soon.

It will ascend the affordability factor highest for the second time after 2021.

Shishir Baijal, Chairman and Managing Director, Knight Frank India said, “This move towards maintaining stability in lending rates bodes well for the real estate sector, which has been consistently growing. It also provides added support to consumers, ensuring economic growth remains robust.”

The decision forecasts happy homebuying across India and low-EMI burden at least for some time.

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