Comments from Real Estate Sector on Repo rate

Pradeep Aggarwal, Founder & Chairman, Signature Global (India) Ltd.

"The Reserve Bank of India (RBI) has maintained steady interest rates for the eighth consecutive time, likely influenced by high food inflation despite the overall Consumer Price Index (CPI) remaining within the target range. Provisional GDP growth for FY24 stands at an impressive 8.2%, up from 7% in FY23, further supporting this decision. Additionally, the combined Index of eight core industries (ICI) recorded a provisional growth of 6.2% in April 2024 compared to April 2023, reflecting increased production in key industries.
Economists predict that if inflation continues to decline, rate cuts of 25-50 basis points could be expected in the second half of the fiscal year. Such a reduction in interest rates could significantly boost the real estate sector, which is already benefiting from strong end-user demand. We anticipate this robust demand trend to remain healthy over the coming years, particularly in cities like Gurugram, which are experiencing substantial infrastructure development."

Santosh Agarwal, CFO and Executive Director 
 “Alphacorp expressed support for the RBI’s decision to maintain the repo rate at 6.5%, highlighting its role in fostering economic stability essential for real estate growth. This stability aids in managing borrowing costs, benefiting home buyers with predictable loan rates and stable EMIs, thus making homeownership more accessible. Investors can also expect steady returns, boosting confidence in the real estate market. Developers will benefit from stable borrowing costs, enabling efficient project completion and a steady supply of residential and commercial spaces. Going forward, we plan to expand our projects to meet the rising demand. The current monetary policy and economic growth create favourable conditions for ongoing development in construction and real estate, aligning with our goal of providing high-quality spaces that meet customer requirements.”

Yashank Wason, Managing Director, Royal Green Realty 
"We hail the decision of RBI MPC meeting to hold the benchmark rate at 6.5 percent for the eighth consecutive policy review. Maintaining the status quo augurs well for India’s growing economy. This move will keep the momentum of real estate going on. Housing sales across the country, including Delhi NCR, have been phenomenal in the last few quarters. The unchanged repo rate will boost the confidence of homebuyers to purchase properties and give breathers to home loan borrowers. The consistent stand of RBI will give stability to the real estate sector and its growth will significantly add traction to the country's growing GDP and promising future prospects."

Vipin Sharma, Founder & Chairman, Aarize Group 
“The Reserve Bank of India has decided to keep the repo rate at 6.5% during its monetary policy, which will benefit the real estate sector. We believe that India's growth at 8.2% in FY 2023-24 is an outcome of the initiatives made for Viksit Bharat by 2047; the growth trajectory is predicted to continue and strengthen in the future. This stability in loan rates promotes current and future real estate investments, hence improving sector growth. Therefore, we are committed to use this growth boost to meet the increasing demand for residential and commercial spaces.”

Manish Jaiswal, Group COO, Eldeco 
“With the RBI maintaining the repo rate at 6.5%, we strongly support this prudent decision by the government. This stability is crucial as it ensures consistent borrowing costs, encouraging more homebuyers and investors into the market. The robust GDP growth projection of 6.5% further boosts our confidence in expanding our projects to meet the increasing demand for residential and commercial spaces.”

Abhishek Trehan, Executive Director, Trehan Iris
“The RBI's decision to keep the repo rate at 6.5% is expected to bring stability to the real estate sector, creating a favorable environment for growth. This move aims to bolster the sector's momentum, potentially increasing demand for housing, especially luxury properties. As India's economy continues to grow, the real estate sector is positioned to have a significant impact on the country's development, and the RBI's repo rate policy will play a crucial role in driving that growth forward.”

Ashish Agarwal, Director, AU Real Estate 
“The RBI’s decision to maintain the repo rate unchanged is a thoughtful move that will have a lasting impact on the real estate sector. This stability in interest rates will make homeownership more attainable and affordable for buyers, which in turn will drive demand for luxury housing. As India's economy continues its upward trajectory, the real estate sector is poised to play a pivotal role, and this repo rate policy will be a crucial catalyst in propelling that growth forward.”

Varun Sharma, Founder & MD, MVN Group
“The RBI’s prudent decision to keep the repo rate unchanged will instill confidence in homebuyers and investors, providing a significant boost to the real estate market by fostering a climate of growth and stability. This move will especially benefit the luxury housing segment, where demand for exclusive high-end properties is set to soar, driving growth not only in metro cities but also in emerging luxury markets across India.”