I believe the Indian commercial segment is attractive to global players due to its cost effectiveness and availability of skilled talent. A sustained economic expansion has led to a rise in the demand for office spaces, organized retail spaces, and warehouses in Indian commercial real estate. There is, however, a possibility that tenants will consolidate and reorganize offices as flex workspaces become more popular. Real GDP growth pegged at 6.5% for FY 23–24 is in anticipation of the Indian economy’s resilience to withstand geo-political upheaval due to global realignment. India is enjoying its goldilocks moment as economic activities rebound, with an uptick in private and public capex, enhanced capacity utilization, robust domestic demand, and favorable demographic dividends.”
Dr Nitesh Kumar MD @ CEO Emami Realty said “RBI maintains status quo with repo rate on pause despite global economic uncertainties and inflation. Homebuying sentiments will be boosted. In addition to strong macroeconomic fundamentals, the country’s economy is performing well. To boost overall market confidence and make home buying more appealing, the continuation of existing policy rates and possibly a further reduction in interest rates would be preferable. Domestic consumption and NRI demand are expected to increase with this policy decision during the festive season for real estate.”
“The decision by the RBI to maintain the repo rates at 6.50 percent is a favorable step, though a decrease in these rates would have positively impacted the optimism of potential homebuyers resulting in stimulated home sales. An adjustment like that would have injected more funds into the pockets of prospective homebuyers, motivating them to make their dream home purchase. Nevertheless, the RBI has effectively managed to keep inflation rates within acceptable boundaries. The Indian economy has displayed resilience against global uncertainties and has exhibited commendable performance. Also, the government has implemented a range of constructive policy measures that have sustained housing sales momentum. Additionally, the government’s resolution to keep the Ready Reckoner (RR) rates steady for the state in 2023-24, has indeed elevated the confidence of homebuyers. We once again make an appeal to the government to consider reducing stamp duty rates, a move that could invigorate the interest of potential homebuyers. It is our hope that these positive advancements will uphold the enthusiasm of homebuyers, encouraging them to step forward and realize their homeownership aspirations.”
Mr. Pritam Chivukula – Vice President, CREDAI-MCHI and Co-Founder & Director, Tridhaatu Realty
“The RBI’s decision to keep the repo rate unchanged at 6.50 per cent, once again reiterates the government’s resolve in supporting the real estate industry with sustaining government policies. This pause in the repo rate will help in improving market sentiments which is essential, given the upcoming festive season. This will drive housing demand, while controlling inflationary trends. We expect the government to continue with industry friendly policies that will sustain housing sales. We also look forward to the state government reducing stamp duty which will further bring relief to home buyers and boost home sales.”
“The RBI’s choice to keep its key policy rates unchanged for the third consecutive occasion was anticipated. This decision arrives amidst escalating property prices, which is already adding a huge financial burden to the end consumer. Although the decision might not have an immediate impact on the prospective homeowners, but it does offer some stability to the real estate sector. Consequently, it could potentially motivate several homebuyers who were actively in pursuit of their dream home. We eagerly anticipate governmental involvement, possibly through the reduction of stamp duty rates, which would offer relief to homebuyers and alleviate their financial strain even more.”
“We welcome the RBIs decision to keep the repo rate unchanged as it will provide a major boost to the housing sector. By maintaining a status quo we can expect more home buyers to come forward and buy their desired home. We look forward to continued support from the government in terms of industry friendly policies that will help sustain growth of the sector.”
“The RBIs decision to keep the repo rate unchanged is a good move as it will curb inflation and drive housing demand. This comes at a time when market sentiments are robust coupled with high expectations given the approaching festive season. We hope the government considers bringing down stamp duty rates which will have a positive impact on home buyer sentiments and bring much needed relief to the home buyer.”
Mr. Vivek Mohanani – MD & CEO, Ekta World
“The Indian economy has demonstrated remarkable strength and resilience in the face of global challenges. The RBI’s choice to uphold the current stance for the third consecutive occasion was a predictable decision aimed at prioritizing stability. Opting for another increase in the repo rate by the RBI would not have been favorable for the real estate sector, given that home loan interest rates are already increased. Any additional escalation in policy rates could have significantly impacted the sentiments of potential buyers and their ability to afford homes. This, in turn, might have restrained the demand as well. It would be more preferable to see a further reduction in interest rates in the near future to enhance overall market confidence and create a more appealing environment for prospective home buyers.”
“Considering the existing market circumstances and inflationary pressures, the move by the RBI was anticipated to steer the economy in the right direction and maintain a stable financial environment. Escalating property costs had already compounded the challenges for those looking to purchase homes. However, the RBI’s choice to abstain from another repo rate hike has provided a big respite to prospective homebuyers. Furthermore, individuals aiming to purchase their first home often consider it as a significant investment, and this move by the RBI is expected to positively influence their decision-making process.”
“We welcome the RBI’s decision of keeping the key rates unchanged amid the rising inflation. This would encourage the prospective homebuyers to still close-in on their property investments. In the last couple of years, we have witnessed a lot of investment in real estate as it has provided the investors with more value for their money and it has also become an attractive asset class when compared to other investment options.”
Mr. Sanchit Bhutani, Managing Director, Group108, “The real estate sector has received a boon as the RBI chooses to retain repo rates. Stability and continuity attract investors, assuring a profitable environment for long-term investments. Unchanged repo rates maintain consistent borrowing costs for homebuyers and developers, cultivating a favourable atmosphere for real estate investment. This decision will surely instil confidence among potential investors and enhance the sector’s growth as interest rates remain steady.”
Mr. Rajjath Goel, Managing Director, MRG Group, “RBI’s strategic hold on repo rates balances growth and inflation for the real estate sector. Unchanging rates at 6.5% would vitalise the sector, curbing sudden price hikes and preserving affordability, a cornerstone of sustainability. This decision shall nurture investment, enhance growth, and maintain a harmonious equilibrium between inflation and viability. It would foster trust among buyers and developers, enabling market growth and consistent expansion.”
Mr. Vikas Bhasin, CMD, Saya Group, “We believe that the unaltered repo rate of 6.5% is a significant signal of changing outlook by RBI. Despite the challenges posed by high EMIs and interest rates, the decision shall bolster investor confidence and drive sector growth. The optimistic real estate scenario in the NCR is expected to fuel investments in upscale projects. Middle-income groups’ confidence in real estate investment shall also boost as interest rates remain stable.”
Mr. Ashwinder R Singh, CEO, Residential, Bhartiya Urban, “The unwavering commitment of the RBI to maintaining the repo rates at 6.5% underscores its resolute support for a stable housing market. This strategic decision not only enables buyers to invest in real estate with confidence, free from concerns about abrupt interest rate surges but also fosters an investor-friendly climate, promoting growth in both residential and commercial projects. Such a deliberate and confident choice reflects optimism in India’s economic trajectory, poised to generate positive impacts on the real estate sector.”
Mr. Salil Kumar, Director, CRC Group, “RBI’s decision to keep the repo rates steady at 6.5% welcomes positive developments in the real estate sector. Reduced uncertainty and volatility would promote confidence among buyers and developers, promoting sustained expansion. Lower borrowing costs drive progress in both residential and commercial real estate projects, speeding construction activity and job creation. The stability in interest rates shall increase investment across diverse segments, from first-time buyers to middle-income strata.”
Mr. Deepak Kapoor, Director, Gulshan Group, “The present decision by the RBI to maintain the status quo on the interest rate augurs well for the luxury housing sector. By and large, the luxury real estate domain is less affected by high-interest rates than affordable housing. Still, any further hike would have brought the rates near a psychological breaking point. The decision reduces the element of uncertainty as far as economic policies are concerned. It presents a picture of the country’s resilient economy. We also expect it to spur growth, which again will augur well for luxury realty.”
Mr. Prateek Mittal, Executive Director, Sushma Group, “After six straight increases, the RBI’s decision to press the pause button straightaway for two consecutive times is a welcome move, especially against the backdrop of signs of inflation cooling down and the country promising growth prospects. From developers to homebuyers and financial institutions, every stakeholder in the real estate sector stands to gain as the decision fosters stability and assures that interest rates will remain low. This move will boost real estate across the nation.”
Mr. Pankaj Kumar Jain, MD, KW Group, “RBI’s decision to maintain the repo rate showcases optimism in India’s economic growth trajectory. This decision will favourably influence both the residential and commercial sectors, including retail. However, the present rep is already at its four-year high. Therefore, our earnest appeal to RBI will be to reduce the repo rate in its next MPC meeting. This environment fosters real estate investment and growth, bolstered by the assurance of no imminent interest rate hikes. Steady rates sustain the equilibrium, aiding both buyers and developers by preserving borrowing costs.”
Mr Shailender Sharma, MD, Renowned Group, “A status quo was expected from RBI because this is the trend which RBI if following post increasing it 3 to 4 times earlier however a reduction of rates would be better for the sector. We are expecting a lowering of rate in the 3rd quarter which is usually a festival season and has a higher demand for real estate products.”
Mr. Ajendra Singh, VP, Sales and Marketing, Spectrum, “RBI’s decision to halt hikes and maintain the repo rate at 6.5% is commendable. It has provided solace to buyers with stable interest rates. The decision ensures a flourishing real estate sector and demonstrates a vigilant approach in the face of inflationary trends. This constancy promises stability and invites long-term investors, upholding the expense of borrowing for developers and purchasers. With lowered borrowing costs, both residential and commercial projects are poised to flourish.”
