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RBI Monetary Policy Projects FY25 GDP at 7%, Real Estate Hails Static Repo Rate  

February 8, 2024: Announcing the bi-monthly monetary policy, the RBI Governor Shaktikanta Das on Thursday said that the Monetary Policy Committee (MPC) has decided to keep the repo rate unchanged at 6.5 per cent.

The apex bank chief added that the buoyant demand for residential housing, along with the increased thrust on Government capex, is expected to boost construction activity.

Das opined that repo rate cut in future would give a huge fillip to the affordability in 2024.

This is the sixth time in a row since April 2023, that the RBI has kept the rates unchanged. With this the home loan EMIs (equated monthly installments) are now expected to stay unchanged. 

The real estate sector has welcomed the Reserve Bank of India’s decision to keep the repo rates unchanged. As housing prices witnessed major uptick across the country, this continued pause in the interest rates would encourage homebuyers to go ahead with their purchases. 


Excerpts of realty players on their reaction to RBI’s decision:

Manoj Gaur, President CREDAI NCR and CMD Gaurs Group

“Excellent decision by RBI. For the last one year, RBI has kept the repo rate unchanged at 6.5%. The real estate sector continues to exhibit a steady demand, the commercial segment is doing exceptionally well, and the country’s economy is growing from strength to strength. The residential segment will maintain the trajectory it took last year. I am sure that the sector will continue to show buoyancy as in the past quarters across the country.”

Anuj Puri, Chairman, ANAROCK Group

With the fundamentals of the Indian economy remaining strong despite all global headwinds and inflation well under control, the RBI once again decided to keep the repo rates unchanged at 6.5%, thus extending the festive bonanza that it gave to the homebuyers in its last two policy announcements. Thus, homebuyers retain their advantage of relatively affordable home loan interest rates.

If we consider the present trends, the housing market has been unstoppable, and unchanged home loan rates will help maintain the overall positive consumer sentiments. Given that housing prices have risen across the top 7 cities in the last one year, this breather by the RBI is a distinct advantage to homebuyers. 

As per ANAROCK Research, 2023 saw average housing prices rise by anywhere between 10-24% in the top 7 cities, with Hyderabad recording the highest 24% jump. The average prices in these markets stood at approx. INR 7,080 per sq. ft., while in 2022 it was approx. INR 6,150 per sq. ft. – a collective increase of 15%.


Going forward, we can expect the momentum in housing sales to continue, significantly aided by the unchanged repo rates which will keep home loan interest rates attractive and also signal ongoing robustness of India’s positive economic outlook.

Ashwinder R Singh

Ashwinder R. Singh, Co-Chairman, CII, NR Committee for Real Estate, CEO Residential, Bhartiya Urban
“With policy rates unchanged @6.50% and the RBI MPC’s commitment towards stable lending rates bodes well for India’s real estate sector, particularly in terms of home sales and home loans. With steady rates, prospective homebuyers can approach the market with confidence, driving increased demand for residential properties and facilitating easier access to home financing. This positive environment fosters growth and opportunity within the housing market, benefitting both buyers and developers alike.”

NAREDCO‘s National President, G. Hari Babu 

With an estimated GDP growth of 7% in FY24, there is an optimistic outlook for the year ahead. The unchanged repo rate will stimulate demand in the real estate sector, benefiting both residential and commercial segments. 

Despite this stability, it’s noteworthy that the current interest rate is at its highest level in the last four years. Therefore, we urge that this factor be taken into consideration in the upcoming review meeting. Such efforts will support the promotion of “Affordable Housing” and the government’s crucial initiative of “Housing for All”. This approach will also serve as a cornerstone for fostering inclusive economic development.


Ankush kaul, chief business officer – Ambience Group

“A commendable decision by RBI. It has been one year since the RBI decided to hit the pause button and keep the repo rate at 6.5%. It is expected to stimulate growth and boost the realty sector, providing a fillip to the premium housing and commercial segments. This decision presents the picture of the country’s resilient economy.”

Nayan Raheja, Raheja Developers
“The realty sector welcomes the RBI’s decision to hold the repo rate. This move will foster stability and bolster confidence among stakeholders, including home buyers and investors. However, the repo rate at 6.5% remains at a 4-year high, and a rollback would have boosted the affordable housing segment.”

Kushagr Ansal, Director Ansal Housing
“The RBI’s decision to uphold the current repo rate is greeted with approval. While the real estate sector hoped for a slight reduction, this decision underscores stability. It is poised to enhance confidence among developers and homebuyers, providing clearer long-term financial commitments and EMIs.”

Rajjath Goel, Managing Director of MRG Group

“RBI’s decision to sustain the repo rate at 6.5% for one more consecutive time, anticipating a positive surge in the housing market. Despite the rising housing costs, the unchanged home loan rates offer a semblance of relief to homebuyers. Consequently, both buyers and developers stand to benefit from stable interest rates, fostering increased consumer confidence and investment in the sector. The RBI’s decision is expected to bolster new launches and the expansion of projects in emerging hotspots.”


Rajesh K Saraf, Axiom Landbase, Managing Director, Axiom Landbase
“The RBI’s decision to maintain the repo rate at 6.5% brings positive implications for the Indian housing and home loan sector. With interest rates remaining steady, prospective homebuyers can benefit from a favorable lending environment. This consistent stance instills confidence in the market’s reliability.”

Pawan Sharma, Managing Director Trisol Red

RBI’s decision not to increase the repo rate is once again good news for the real estate sector. The fact that the repo rate has not increased in the past year has proven beneficial for the real estate sector in every aspect. This is undoubtedly excellent relief news for both home buyers and investors. Indeed, this will further benefit the market.

Vikas Bhasin, Chairman & Managing Director, Saya Group
The RBI’s decision to keep the repo rate steady provides optimism to the real estate sector. This move underscores both macro and microeconomic stability, fueling year-end housing sales and bolstering the sector’s growth trajectory for 2024. It showcases the resilience of the country’s economy, poised to spur growth, particularly in premium housing and commercial segments.

Amit Modi, Director, County Group

“stated that once again, RBI has not made any changes in the repo rate, which is undeniably beneficial for the real estate sector. This will particularly uplift the morale of home buyers and investors. It clearly indicates that the country’s economy is consistently performing well.

Ajendra Singh, Vice-President (Sales & Marketing) Spectrum Metro

Once again, not making changes in the repo rate signifies that the Indian Economy is strong. Compared to the Global Economy, India’s economic situation is better. The steps taken by the RBI are beneficial for the commercial and residential real estate sector in every aspect. We hope that this entire year will prove to be suitable for investors.:

Dhruv Agarwala, Group CEO,, & 

“The RBI’s decision to maintain the status quo on the repo rate was widely expected. As the central bank carefully balances between fostering growth and containing inflation, the stability in home loan interest rates offers a welcome respite to borrowers, with no immediate increase in monthly EMIs. Looking ahead, with optimistic projections for improved growth and subdued inflation, we foresee a potential downward adjustment in the repo rate by mid-2024. This outlook is reinforced by continued governmental support and a favourable monetary policy environment, setting the stage for optimism within the sector. Additionally, factors like rapid urbanisation, increasing disposable incomes, and a surge in new home launches expected in the final quarter of the fiscal year contribute to this positive sentiment.within the sector. Additionally, factors like rapid urbanization, increasing disposable incomes, and a surge in new home launches expected in the final quarter of the fiscal year contribute to this positive sentiment.


Shrinivas Rao, FRICS, CEO, Vestian

“RBI maintained status quo and kept the repo rate unchanged at 6.5% for the sixth time in a row. It is a welcome move to curb inflation and control liquidity in the market. Moreover, this stability in the monetary policy along with robust economic growth may result in sustained demand for real estate assets.”

Vimal Nadar

Vimal Nadar, Senior Director, Research, Colliers India

“At 6.5%, the benchmark lending rate has remained stable for a year now. The commitment to growth while taming headline inflation remains unabated while the economy is expected to close at a higher 7.3% for the fiscal 2023-24.

The stability not only provides continued relief to homebuyers in the form of predictable EMIs but also aids real estate developers in having greater confidence on near-term financing costs. The steadiness in real estate ecosystem augurs well for healthier balance sheets and should provide further momentum to sales in the residential segment. Moreover, the recent focus of the interim budget on infrastructure and urban housing stands to benefit the real estate sector throughout 2024 and beyond. An anticipation of future repo rate cuts and projected GDP growth rate of 7% for fiscal 2024-25 adds credence to conviction of a strong performance by the real estate sector in the next few quarters.”

Amit Goyal, MD, India Sotheby’s International Realty
The RBI’s decision to maintain policy rates at 6.5% was anticipated, given the global uncertainties, which is also highlighted by the governor, including ongoing conflicts and emerging flashpoints worldwide, with disruptions in the Red Sea being the latest example.
However, the encouraging aspect is the remarkable performance of the Indian economy in recent years. Growth is accelerating, surpassing most forecasts, and inflation is on a downward trend. The projected real GDP growth for the next financial year stands at 7%, with risks evenly balanced. Headline inflation has moderated to 5.5%, which is positive news. If the current scenario persists, we may anticipate a rate cut in the next MPC meeting.

Overall, the current situation bodes well for the real estate market, and we anticipate robust demand to continue, particularly in the luxury real estate segment.

Prashant Rao, Managing Director, Poulomi Estates

Against the backdrop of global uncertainties, the RBI’s decision to maintain policy rates at 6.5% came as no surprise. However, the governor highlighted that India’s potential growth is currently underpinned by structural drivers such as improved physical infrastructure, the development of world-class digital and payment technologies, ease of doing business, increased labor force participation, and better quality of fiscal spending. Consequently, the projected real GDP growth for the next financial year stands at 7%, with risks evenly balanced, and headline inflation has moderated to 5.5%. These developments bring positive news for both the Indian economy and the real estate sector. With this we anticipate a rate cuts in the next MPC meeting, which will be advantageous for home buyers. 


Piyush Bothra, Co-founder and CFO, Square Yards

The RBI’s decision to keep the status quo for the sixth consecutive time is in line with expectations and is poised to bolster consumer confidence. This move is a big positive for the affordable and low-income housing segments, which are responsive to interest rate fluctuations. The decision also fosters confidence among homebuyers by providing stability in loan repayments, consequently stimulating overall consumer spending. With the real estate market currently experiencing a bullish trend, the RBI’s persistent repo rate stance is anticipated to amplify the momentum in the housing sector.

Aditya Kushwaha

Aditya Kushwaha, CEO and Director Axis Ecorp

We welcome the Reserve Bank of India’s decision to keep the repo rate unchanged, a move that will undoubtedly resonate positively within the real estate sector. This decision creates a conducive environment for both individuals and businesses and will stimulate demand momentum. The unaltered repo rate, coupled with a bullish domestic economic sentiment, is poised to elevate investors’ confidence in the real estate market. This move also augurs well for the luxury real estate segment, where demand remains robust and is likely to continue its upward trajectory. In tandem with this, we are witnessing a notable uptick in new project launches, further underscoring the positive outlook for the real estate sector. The confluence of unchanged repo rates, buoyant demand in luxury real estate, and increased project launches collectively signifies a promising phase for the industry, fostering growth and resilience