After the government’s push on infrastructure in the budget, now people also have positive expectations from the RBI. The Reserve Bank of India may once again provide relief to the people. According to experts, the Central Bank will not increase the repo rate this quarter either. The Reserve Bank of India will announce the policy repo rate on August 8. In such a situation, people and experts associated with the real estate sector, along with the general public, have high expectations from the RBI. Experts expect that due to the stability of the repo rate, home purchases will increase but home loan rates of people will not increase. If the repo rate is not increased, there will definitely be a boom in the real estate sector in this quarter of the fiscal year 2024-25.
According to experts, there is no chance of a further change in the policy rate at the monetary policy review to be held this week. The reason for this is to remove concerns about the economic growth rate. Now the central bank can put more emphasis on bringing inflation to the four percent target. A significant boom has been seen in the real estate sector in the years 2022 and 2023. Recent reports from all agencies also show that people are showing interest in owning their own home. In such a situation, home sales are at an all-time high.
While developers are also offering discounts on flats, shops or offices, some of them are luring them with freebies. According to experts, in order to strengthen the economy, the RBI will also not increase the repo rate in this quarter, which will provide relief to the people. It is also believed that interest rates could be reduced this quarter. Those taking home loans will benefit the most from this.
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The rate hike will have an impact during the election period.
Assembly elections will be held in many states of the country this year. In such a situation, the results of the pre-election meeting can have an impact on the elections as well. If the Central Bank takes a decision to reduce the repo rate, then the interest rates can be reduced, which can reduce the EMI of the loan. Its effect can be positive, however, if viewed in reverse, the results can also be negative.
The economy will reach new heights
Manoj Gaur, Chairman of CREDAI NCR and President of Gaur Group, says that the economy has become quite strong after the Covid period. The real estate sector has especially contributed to this. Now the RBI wants to further strengthen the economic growth rate by reducing inflation. Its effort is to bring down inflation to four per cent. In such a situation, it is believed that there will not be any increase in the repo rate this time either. However, the RBI is expected to reduce the repo rate soon, which will directly benefit home buyers and increase investment in the real estate sector.
RBI confidence remains intact
SKA Group Director Sanjay Sharma said that for eight consecutive times the RBI has decided to keep the repo rate unchanged at 6.5%. This reflects the RBI’s confidence in the economic outlook. This time too the RBI is expected to keep the repo rate stable which will greatly benefit prospective home buyers. Even if the repo rate is not increased this time, this step will ensure that the real estate sector can scale new heights without facing any financial challenges.
The economy is receiving positive signals
Dr Amish Bhutani, Managing Director, 108 Group, says that the fact that the repo rate has not been increased eight times in a row is a very positive sign for the real estate sector and the economy. If the repo rate is not increased this time too, then it can be considered a positive outlook from the Reserve Bank. Despite the challenges posed by high interest rates and EMIs, this decision will further boost the confidence of home buyers and investors. It is expected that this time too, the interest rates will remain stable and the development of the real estate sector will gain momentum. Investment in better real estate projects in NCR is expected to get a boost. The absence of an increase in interest rates will also boost the confidence of middle-income groups to invest in the real estate sector.
The rapid pace of development will continue
Piyush Kansal, CEO, Royal Estate Group, says real estate developers believe that if the RBI keeps the repo rate stable this time too, then it will be a good step, which will bring much-needed stability for homebuyers and the industry. This will ease EMIs for buyers and help developers manage their financial expenses. Home loan interest rates are unlikely to increase, which will benefit the real estate sector. This stability will encourage both developers and buyers and bring positive changes in the industry. A stable environment will improve financial conditions and increase demand in the NCR and high-end residential sectors, leading to continued growth in this sector.
The future of the real estate sector is better
According to Pawan Sharma, CEO, Trisol Red, there has been no change in the repo rate for some time. Luxury housing is doing well in and around NCR, which points towards a bright future for the region. We expect the RBI to maintain the same pace, which will boost demand for real estate.
Everyone will benefit from low interest rates
Nandani Garg, director at Rajdarbar Ventures, said that we expect the RBI to keep the repo rate stable this time as well. This will strengthen the sentiment of people buying homes as the interest rates on home loans will remain low. Amid rising housing demand, stable interest rates will provide relief to home buyers. At the same time, both developers and home buyers will benefit from stable borrowing costs, which will boost confidence and stability in the market. This stability will bring more profitable opportunities for buyers and developers in both the residential and commercial sectors.
Rates are expected to remain stable
Harsh Gupta, CEO of Sundream Group, says real estate developers are hopeful that the Reserve Bank of India will keep the repo rate at 6.5% in its next decision. With economic growth on the rise, the Monetary Policy Committee (MPC) may refrain from cutting rates, which will continue to support the real estate sector. This stability has calmed financial markets and strengthened investor confidence. Even a modest cut in repo rates will provide incentives to developers and buyers.
Hope of bringing oxygen to the entire economy
According to Prateek Mittal, CEO of Sushma Group, the RBI stopped raising interest rates in February 2023, after which the real estate sector, especially the premium and luxury segments, saw a huge growth. Now that the economic situation is improving and inflation is gradually declining, keeping the repo rate as it is will be beneficial for the real estate sector in India. This will keep home loan rates and property prices stable, which is good for both builders and buyers. This will make it easier for buyers to own a home and there will be a good boom in the real estate market, which will benefit the entire economy.
