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RBI Keeps Repo Rate Unchanged on Expected Lines, Move Likely to Provide Further Stability to the Real Estate Sector

June 7, 2024: The expected status quo maintained by the Reserve Bank of India (RBI) on policy rate at 6.5 per cent is likely to provide further stability to the real estate secor, say experts. 

This decision, coupled with robust GDP growth projections, a strong push for infrastructural development, and an increased pace of project launches, is set to bolster the real estate sector significantly. The real estate sector has largely welcomed the RBI’s decision – 

Mohit goel

Mohit Goel, Managing Director of 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.”

Sanjay Sharma, 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.

Manoj Gaur, President of 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 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.

Pyush Lohia, Director, Lohia Global
Monetary Policy Committee (MPC) meeting “The consistent repo rate over recent sessions has provided a stable foundation for growth in the real estate market. Stability or further easing in the rate by the RBI would be a significant boost, enhancing buyer confidence and making housing loans more affordable. This is crucial for sustaining the momentum in home buying that we’ve observed post-pandemic, particularly in the burgeoning markets of tier 2 cities. We are particularly attentive to how the MPC addresses the ongoing inflation pressures and their impact on borrowing costs. A balanced policy that supports economic growth while managing inflation is essential for the health of the real estate sector. We hope for continued measures or even strategic cuts in the interest rates to foster a more conducive environment for homebuyers and developers alike.
Moreover, we look forward to initiatives that could support the real estate sector in addressing the supply chain disruptions and escalating raw material costs, which are significant concerns for developers.
It’s great to see that these policies hold the potential to propel the real estate sector further, especially if the policies continue to support lower financing costs and economic stability. Such outcomes from the RBI would reinforce our commitment at Lohia Worldspace to embark on new projects and deliver quality housing to our customers, fostering a stronger economic landscape across our cities”

Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE

The Reserve Bank of India’s (RBI) decision to retain the repo rate at 6.50% signifies a continuity of cautious monetary policy. This prioritizes the objective of achieving an equilibrium between curbing inflationary pressures and nurturing a robust economic environment. Maintaining the status quo of the repo rate is likely to ensure sustained momentum within the real estate sector, thereby benefiting borrowers. Furthermore, the policy decision is expected to contribute to a broader affirmation of consumer confidence.

Anuj Puri

Anuj Puri, Chairman – ANAROCK Group The Reserve Bank of India’s decision to keep the repo rate unchanged is a boon for the Indian real estate sector. This stability ensures that home loan interest rates remain low, making housing more affordable for potential buyers. With unchanged borrowing costs, both developers and homebuyers benefit from increased market confidence and predictability. The mid-range and premium property segments together account for more than 55% of the current supply. Together, they recorded approx. 76,555 units sold in Q1 2024 – nearly 60% of the total sales. The buyers of this segment are sensitive to volatile interest rates, and upward hikes would cause many of them to defer home purchases. This policy continuity supports sustained demand in these two segments.The affordable housing sector is, of course, most cost sensitive. While PMAY Urban has sanctioned 118.64 lakh homes against a demand of 112.24 lakh homes, affordable housing (homes priced under INR 40 lakhs) sales in Q1 2024 recorded 26,545 units – a mere 20% of the total sales. However, as we have seen, unchanged home loan rates alone are insufficient to induce new vibrancy in the affordable segment. It is hoped that the government will soon introduce further incentives to support it. With the mandate of a stable government now manifest in an unchanged monetary policy, the housing sector’s overall growth momentum will continue. 

Nayan Raheja from Raheja Developers said, “The RBI’s decision to keep the repo rate unchanged at 6.5% for the eighth time benefits the real estate sector in several ways including Consumer Confidence. Stability in interest rates boosts confidence, making home purchases more attractive and affordable. Real estate becomes a more appealing investment compared to volatile options, attracting both domestic and foreign investors. Predictable loan costs leave consumers with more disposable income, driving demand for housing. Overall, stable repo rates support growth, affordability, and investment in the real estate sector.

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.”

Ashwani Kumar, Pyramid Infratech, “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.”

Sanchit Bhutani, MD, Group 108 said, “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.”

Yash Miglani, MD Migsun Group, “The RBI’s decision to keep the repo rate stable is a balancing act between controlling inflation and promoting economic development. Amidst reduced inflation and strong GDP forecasts, swiftly aligning with the real estate sector is imperative. Embracing innovation, stability, and strategies will be key to unlocking new opportunities for growth in the sector through emerging scenarios.”

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.

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 stabilizes 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

Ashwinder R Singh

Ashwinder R. Singh, Co-Chair of CII’s NR Committee on Real Estate, CEO of 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.”

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.

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 says, “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 says “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 of 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 the increase end user and investor participation.”

Piyush Kansal, Royale Estate Group expressed, “The RBI’s decision to keep the repo rate unchanged at 6.5% for real estate is commendable. With the country’s economy performing exceptionally well, along with good GDP growth and control over inflation, this sector is expected to continue performing well in the future. However, there are concerns about affordable housing and real estate development in Tier 2 and 3 cities. If there were a reduction in repo rates, it would assist real estate developers in realizing their housing aspirations.”


Ankush Kaul, Chief Business Officer at Ambience Group said, “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.”

“The realty sector’s development has turned positive, with increasing competition and more people investing in the mid, premium, and luxury residential segments. Developers, on their part, have accelerated the pace of new launches, as evident from the recent Q1 report. India is on a path of progress, and the RBI’s decision to keep the repo rate unchanged will not disrupt the momentum. This decision will motivate the sector because it will relieve borrowers since their EMI will stay the same.” says Prateek Mittal, Executive Director, Sushma Group.

Sandeep Chillar, Founder & Chairman of Landmark Group said that 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.”

“The Indian real estate sector has been strengthening over the past few years. The RBI’s decision to maintain the repo rate at 6.50% for the eighth consecutive time will benefit this sector. In recent years, there has been a surge in sales in the premium and luxury segments. Buyers are investing in the luxury housing sector, leading to the launch of new projects in this segment. Considering the upcoming festive season, we hope this decision will benefit the luxury real estate sector.” Says Tejpreet Singh, MD Gillco Group.


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.”

 G Hari Babu, National President of NAREDCO
By keeping the inflation projection steady and maintaining the repo rate at 6.5%, the central bank is signaling its dedication to bolstering the economy and maintaining stability. This is particularly encouraging for both luxury and affordable housing developers alike.
For the average homebuyer or developer, this is excellent news. It implies that borrowing costs will stay relatively affordable, potentially prompting more individuals to consider property investment. Moreover, with core inflation easing and fuel prices decreasing, consumers may find themselves with extra funds to allocate towards a down payment or home enhancement venture.
Additionally, the commitment to stability extends to sustainable practices within the housing sector. Developers are increasingly embracing environmentally friendly initiatives, which not only align with global sustainability goals but also appeal to socially conscious buyers. This alignment with sustainable development objectives further enhances the attractiveness of real estate investments.

Anantharam Varayur, Co-founder, Manasum Senior Living
The RBI governor’s decision to maintain the inflation projection and keep the repo rate at 6.5% is particularly encouraging for the senior living residential projects sector. With core inflation moderating and fuel prices stabilizing, there is a positive outlook for the economy, which could boost confidence among seniors and their families looking to invest in such projects. The unchanged repo rate provides much-needed stability, ensuring that borrowing costs for developers remain steady. This predictability in interest rates could attract more investment into senior living projects, as developers can plan their finances more effectively. Besides, the RBI’s commitment to achieving a durable 4% inflation target and ensuring price stability sets a strong foundation for sustained growth in this sector. As the economy continues to recover, the demand for senior living residential options is likely to rise, offering promising prospects for these projects in the long term.

Dr Niranjan

Dr. Niranjan Hiranandani, Chairman, Hiranandani Group & NAREDCO, “Bank deposit trends reflect volatility in rates and markets, with customers more actively managing their cash to make the most of varying economic conditions. Consumers are skewed to park their funds in physical assets like real estate, which is on an upward growth trajectory after a sluggish decade. As a result of the rising demand for residential, commercial, and retail properties, a supply funnel is brewing with a slew of new projects underway. REITS, fractional ownership, and other methods of investing in quality real estate have rekindled the interest of the investor class in real estate.

The new government must set a tone that aligns with market expectations after the unprecedented conclusion of the Lok Sabha election in 2024. At the moment, markets anticipate a swift shift towards lowering interest rates as inflation is within controllable bands. Amidst the Federal Reserve’s pause in the rate-cut cycle, Indian economy watchers are intrigued by changes in both the domestic and geopolitical landscapes. The industry expects the new government to lower interest rates, announce fiscal incentives, and rationalize taxes. This will stimulate sustained economic growth and reinforce confidence among the diverse stakeholders. Bottom line, an accommodative monetary policy along with a proactive government stance will bode well for the Indian economy.”

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