RBI keeps Repo Rate unchanged at 6.5%: Real Estate Developers Speaks

The RBI's decision to keep the repo rate unchanged for the eighth consecutive time will have a positive impact on the overall growth of the real estate sector. Coupled with GDP growth projections, massive thrust on infrastructural development, an increased pace of project launches, and a robust demand, it will ultimately boost the real estate sector. As, the Indian real estate sector is poised to grow over three times to reach an estimated USD 1.5 trillion by 2034, constituting 10.5% of the total economic output by then, according to a joint report by Knight Frank India and CII.

However, while welcoming the move, the real estate sector developers were also of the view that an intervention to boost the affordable housing segment was also needed, especially at a time when India profoundly committed to fulfilling its housing dreams.

Manoj Gaur, President CREDAI NCR and CMD Gaurs Group said, "Even though a marginal reduction in the repo rate would have further raised the real estate sector’s spirit, we welcome RBI’s announcement not to change the interest rate. One area of concern is the affordable housing segment, which definitely requires an intervention. Overall, this is a welcome decision, and the real estate market, with an all-time low unsold stock and experiencing an all-time boom, welcomes this move. The decision supports the growth and stability of the sector.

According to Ankush Kaul, Chief Business Officer, of Ambience Group, “RBI has maintained the repo rate at 6.5 per cent for the last 16 months. This rate has been kept in mind by the real estate sector for a long time. There is a distinct excitement and confidence among potential buyers, which will encourage buyers to invest in both residential and commercial sectors as the festive season approaches.

Mohit Goel, MD, Omaxe Group said,  "By maintaining the repo rate at 6.50% for the eighth consecutive time, the RBI has again relieved both buyers and developers. The sector is experiencing remarkable growth, with increased interest in mid, premium, and luxury housing segments. Stable loan rates will benefit prospective buyers and sustain public confidence in the authorities. We expect this positive step to keep the real estate sector on an upward trajectory, benefiting both buyers and developers."

Ashwinder R. Singh, Co-Chair of CII's NR Committee on Real Estate, CEO Residential at Bhartiya Urban, and Author said, "The RBI's decision to maintain the repo rate at 6.50% is a strategically sound move that reinforces stability and confidence in the real estate market. This policy stance not only sustains the current growth trajectory but also enhances affordability for potential homebuyers and commercial real estate investors. By keeping interest rates steady, the RBI ensures that financial burdens on borrowers remain manageable, thereby encouraging more investments and purchases. This is expected to drive positive demand, bolster market sentiment, and support long-term growth in the sector."

"By maintaining the repo rate at 6.50% for the eighth consecutive time, the RBI has demonstrated a commendable initiative for buyers," says Gurpal Singh Chawla, Managing Director of TREVOC. "This decision not only stabilises interest rates for potential buyers but also reinforces public confidence in the government. It's a positive step, and we are optimistic that the real estate sector will continue to grow rapidly. Both developers and buyers stand to benefit from this measure."

Pradeep Aggarwal, Founder & Chairman, Signature Global (India) Ltd said, " We welcome the apex bank's strategic move to hold rates steady for the eighth consecutive time. This decision reflects a careful balance between addressing high food inflation and maintaining overall economic stability, with the Consumer Price Index (CPI) staying within the target range. However, economists anticipate that if inflation continues to decline, we might see rate cuts of 25-50 basis points in the second half of the fiscal year. Such reductions in interest rates could be introduced in future policy reviews.
If these rate cuts materialize, they could significantly boost the real estate sector, which is already experiencing strong demand from end-users. Lower interest rates would make borrowing cheaper, encouraging more people to invest in property and stimulating further growth in the housing market. This trend is particularly expected to remain robust over the coming years in cities like Gurugram, which are witnessing substantial infrastructure development. Gurugram's rapid urbanization and infrastructure projects, such as new highways, metro extensions, and improved public amenities, are making it an attractive destination for homebuyers and investors.

Sanjay Sharma, the director of SKA Group, stated that the RBI's decision to maintain the repo rate at 6.50% for the eighth consecutive time is a positive step towards reducing the financial burden on potential buyers. This decision is a significant incentive for potential buyers in the commercial sector to proceed with their property purchases. Certainly, the RBI's decision will accelerate affordable and mid-range commercial projects.

Pawan Sharma, MD, Trisol RED said, “The decision to maintain the repo rate at 6.5% is expected to bring about positive growth in the housing market. Despite the increasing cost of housing, unchanged home loan rates provide some relief to potential homebuyers. Consequently, stable interest rates benefit buyers and developers, fostering confidence and investment in the sector. The RBI's decision is poised to encourage the commencement of new projects and the expansion of development in emerging sectors.”

Harinder Singh Hora, Founder Chairman, Reach Group said, “These are great times both for the economy and the real estate sector including the commercial segment. The decision by RBI to keep the repo rate unchanged will bring cheers to the market. World sees immense possibilities in India and the growth trajectory is high. The GDP numbers are also expected to get better and the real estate share in the GDP percentage is rising. Altogether, RBI’s decision will boost real estate investments.”
Kushagr Ansal, Director of Ansal Housing, believes the RBI's decision to maintain the repo rate will positively impact the housing market. Despite rising housing costs, the unchanged home loan rates offer some relief to prospective buyers. As a result, stable interest rates benefit both buyers and developers, fostering increased consumer confidence and investment in the sector. The RBI's decision is expected to support the launch of new projects and the expansion of developments in emerging areas of interest.
Amit Modi, Director County Group States, The RBI's decision to keep the repo rate unchanged at 6.50% is a welcome step. This move is beneficial for both developers and potential buyers interested in investing in this sector. It will provide them relief in terms of loan interest rates, along with additional benefits from the government's measures to balance inflation. The government is considerate of buyers' sentiments and expectations, and its favorable decisions for this sector are promoting its growth.

Salil Kumar, Director, Sales & Marketing, CRC Group said, “The real estate sector has experienced significant growth in recent years, and the RBI's decision to maintain the repo rate at 6.50% for the eighth consecutive time will have a positive impact on the industry. With rising housing demand, the stability in loan rates will foster greater confidence among buyers and developers, promoting long-term growth. This steadiness in interest rates will enhance both the residential and commercial real estate sectors, creating attractive investment opportunities for buyers across all segments.”

Sachin Gawri, Founder and CEO of RISE Infraventures, said, "Once again, the RBI has made no changes to the repo rate, which undoubtedly benefits the real estate sector. This decision by the RBI will prove favorable for both investors and homebuyers. The RBI's decision indicates that the country's economy consistently performs well. We are confident that with India's growing economic flexibility and the decline in inflation, there will be further reduction in the repo rate, resulting in growth in the real estate sector, which is already breaking previous records."
 
Sanchit Bhutani, MD, Group 108 says, The RBI has once again taken a commendable step by keeping the repo rate steady for the eighth consecutive time. A stable repo rate provides confidence for investors and home buyers. This stability directly impacts the growth of real estate sector, which in turn makes a significant contribution to India's GDP and future growth prospects.
 
Rajjath Goel, Managing Director, MRG Group said, “The Reserve Bank has reassured the real estate industry by maintaining stability in repo rates at 6.50% for the eighth consecutive time, bringing relief to potential buyers. With no adjustments made for over a year, buyers can proceed with their investments without facing the pressure of rising loan interest rates. This decision not only alleviates financial concerns but also demonstrates the authorities' commitment to controlling inflation. We commend this prudent move and its positive impact on the market.
 
Neeraj Sharma, MD, Escon Infra Realtor said, "The RBI's decision to keep the repo rates unchanged at 6.50% for the eighth time is a welcome step. This move will continue to boost momentum in the real estate sector as before. With this decision by the RBI, the flow of potential buyers will also increase because investing will not burden their pockets. Indeed, with interest rates not rising, investor confidence will increase, and there will be faster growth in residential property demand."
 
Prateek Tiwari, MD, Prateek Group said, "The RBI has made a welcoming move by keeping the repo rates unchanged at 6.50%. This move benefits developers and prospective buyers looking forward to investing in the sector. Further, it would bring them relief in terms of loan interest rates. The real estate sector is witnessing healthy growth momentum thus improved market sentiments and economic dynamics along with the stability in interest rates will augur well for the sector's growth momentum."
 
Sanjeev Arora, DIrector 360 Realtors said, "Keeping the repo rate unchanged is on expected lines given the fact that food inflation is rising. Hence RBI will be in a weight and watch mode, Also the agencies will give some time to the new government before taking any significant monetary decision. The silver lining is that real estate will continue to clock double digit growth backed by steep rise in demand. The market will be upbeat in the times to come marked by increase end user and investor participation."
 
Ashwani Kumar, Pyramid Infratech said, “The RBI's maintenance of the repo rates at 6.50% offers developers and potential buyers eyeing investments in the sector advantages. The sector has already been performing well over the last few years, and the decision to keep the repo rate unchanged will benefit both prospective buyers and developers. This stability is expected to enhance both residential and commercial real estate sectors, creating appealing investment avenues across all buyer segments. This will also boost the affordable housing segment, which is looking for some relief.
 
Uddhav Poddar, Managing Director, Bhumika Group said, “The decision to maintain the RBI's repo rate is an extremely positive step for homebuyers and investors. By keeping the rate stable for the eighth consecutive time, the RBI has indicated strong confidence in the real estate sector and homebuyers. This will not only help in balancing inflation but also inject new energy into the real estate market, marking a moment of joy for homebuyers and investors.”
 
Sandeep Chillar, Founder & Chairman of Landmark Group said, ”The RBI's decision to keep the repo rate unchanged for the eighth consecutive time is on the expected lines. The real estate sector is on an upward growth trajectory and the stability in the repo rate will give a fillip to the steady growth while adapting to broader economic conditions and policy directions. By aiming to balance financial stability and economic development, the cautious decision to keep the repo rate unchanged at 6.5% is likely to help the real estate sector maintain its growth momentum, leading to healthy sales in the coming quarter.
By keeping interest rates steady, the RBI ensures that financial burdens on borrowers remain manageable, thereby encouraging investments and purchases in both residential and commercial sectors. This decision is seen as a strategic and commendable initiative that not only sustains the current growth trajectory but also bolsters market sentiment, supports long-term sector growth, and benefits both developers and buyers. As the festive season approaches, this stable financial environment is expected to drive positive demand, encourage new projects, and expand development in emerging sectors, reinforcing public confidence in the government's economic policies.”