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RBI’s Status Quo on Key Policy Rates to Help Maintain the Real Estate Growth Momentum, Say Industry Stalwarts

In a move that has resonated positively across the real estate sector, the Reserve Bank of India (RBI) has announced its decision to maintain the current policy rates.
This move is seen as a catalyst that will stimulate growth within the housing market, with industry experts predicting that this will help in keeping the housing boom on track, as prospective home buyers will not face any deterrent in way of softened home loan rates. 

What the industry bigwigs say on the unchanged repo rates? Here are the excerpts –

 Mohit Goel, Managing Director Omaxe Group

We welcome the RBI’s decision to maintain the status quo on the repo rate. The economy, the market, the investors and the buyers are psychologically attuned to this rate, while the realty sector is growing at a rapid pace and finding new footholds in tier 2 and 3 cities. Since this is the seventh time that RBI has kept the rate unchanged at 6.50%, it will not disturb the equilibrium and will help the sector set new records

Manoj Gaur, President, CREDAI NCR and CMD, Gaurs Group

An expected move by RBI. With the Indian economy continuing to exhibit robust performance, the decision to keep the repo rate unchanged for the seventh consecutive time will augur well for the real estate sector. The inflation numbers are still a bit of concern. It is a fine balancing act by the RBI. We hope that the move will help India rein in inflation post which we will see the country enter a low-interest-rate regime. At the same time, the decline in the affordable housing segment is a concern that requires a breather in the form of a reduction in the repo rate

Deepak Kapoor, Director, Gulshan Group

RBI’s decision is good news for the country’s realty sector. Even though we would have wanted it to come down by at least 25 basis points, this would have signalled greater confidence in the Indian economy’s growth trajectory and further boosted the sector. Since February 2023, when the RBI first pressed the pause button, the realty sector has witnessed a record jump in sales in the premium and luxury segments. New launches have phenomenally increased, and unsold inventory has drastically decreased. The decision by RBI to keep the rate at 6.50% has cheered the sector.


Sanjay Sharma

Sanjay Sharma, Director, SKA Group

The RBI’s decision to maintain the repo rate at 6.50% for the seventh consecutive time anticipates an appreciative upswing in the housing market. Amidst the rise in housing prices, the constant home loan rates will bring some relief to homebuyers. In addition, the unchanged interest rates will profit buyers and developers, establishing strong consumer confidence and investment in the sector. The RBI’s decision to keep the repo rate steady will lead to establishing new projects and expanding developments in emerging areas.

Domnic Romell, President, CREDAI-MCHI

CREDAI-MCHI commends the RBI and the Central Government for maintaining the repo rate, a decision that bodes well for both homebuyers and the real estate sector. With stable borrowing costs, homebuyers can confidently pursue their aspirations of homeownership, fostering growth and positivity in the real estate industry.
This reflects the government’s dedication to balancing support for economic growth while managing inflationary pressures. It exemplifies a prudent approach to monetary policy, safeguarding the buoyancy of the real estate sector while mitigating the risk of inflation spikes.

Anuj Puri, Chairman, ANAROCK Group

Aptly and as expected, the RBI has kept the repo rates unchanged at 6.5%. The Indian economy is going strong and inflation is reined in, though it has yet to come within the threshold of RBI’s target. The decision to maintain status quo will keep the ongoing residential real estate sales momentum on course and unimpeded. Aspiring homebuyers eyeing a purchase will proceed with confidence.

Housing sales across the top 7 cities have been phenomenal in the last few quarters, even though prices are rising steadily. The breather which RBI’s unchanged repo rate will provide to home loan borrowers is apt and welcome.

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

The RBI’s decision to maintain the repo rate unchanged is significant as it monitors upside risks to inflation for the Indian economy. This consistent stance of RBI underscores managing price stability amidst inflationary pressures. It’s positive news for future homeowners, as borrowing costs won’t see an increase, making buying a home more accessible


Aditya Kushwaha

Aditya Kushwaha, CEO and Director, Axis Ecorp 

Axis Ecorp welcomes RBI’s decision to maintain the repo rate at 6.5%, reflecting a commitment to stabilizing India’s retail inflation. This move ensures consistency in interest rates, offering homebuyers assurance of steady loan terms. With affordable home loan rates, the market beckons new borrowers into a realm of opportunity. The surge in new project launches, housing unit supply, and luxury sales, alongside record property registrations and 7% price appreciation, underscores the robust real estate performance. The luxury real estate sector in the country is experiencing an unprecedented boom fueled by a convergence of factors. Affluent buyers seeking exclusive, high-end properties are driving demand to new heights. This surge is not only evident in metropolitan cities but also in emerging luxury destinations, where discerning individuals seek unique, luxurious living experiences. A steady interest rate regime coupled with increased government infrastructure investments and liquidity management will enable this segment to grow further.


Ankush Kaul, Chief Business Officer, Ambience Group

RBI has once again satisfied the buyers’ sentiments by keeping the repo rates unchanged at 6.50% for the seventh consecutive time. This will not only stabilize the interest rates for prospective buyers but will also keep the public’s faith in the authorities intact with the elections around the corner. It is a welcome move and we anticipate that the upward trajectory that the real estate sector is sailing on shall continue. This decision shall be beneficial for both borrowers as well as developers bringing an equilibrium in financial volatility.

Ankit Kansal, Managing Director, 360 Realtors

The RBI has kept the repo rate unchanged for 7th time in a row at 6.5%. The central agency has taken the decision keeping the inflation in mind, which is high at 4.5% in FY 25. However, in our opinion the agency could have mulled to revise the rate by 25 basis points, as this would have further helped the economy. Indian economy is slated to grow at 7% in FY 25, which also makes it one of the fastest growing markets in a time, where growth is mostly muted globally. India aims to become the 3rd largest economy by 2030. To further this, government and development agencies need to look for more ways to build capital and infuse liquidity. The forex reserve is at all time high at USD 650 billion and the employment market is upbeat. This will cushion the economy and give agencies space to maneuverer more. 

Kushagr Ansal, Director, Ansal Housing

The RBI’s choice to maintain the repo rate for another consecutive period anticipates a favorable upswing in the housing market. Despite escalating housing expenses, the unchanged home loan rates provide some relief to prospective homebuyers. Consequently, stable interest rates benefit both buyers and developers, fostering heightened consumer confidence and investment in the sector. The RBI’s decision is poised to bolster the introduction of new projects and the expansion of developments in emerging areas of interest.

Nayan Raheja, Raheja Developers

The growth trajectory of the realty sector remains positive, consumption is rising, and more and more people are investing in the mid, premium, and luxury housing sectors. The developers, on their part, have increased the pace of new launches, as exhibited by the recent Q1 report. India is firmly on the path of progress, and the decision by RBI to not disturb the pace by keeping the repo rate unchanged will enthuse the sector as it will also provide some relief to borrowers as their EMIs will not rise.


Yash Miglani, MD, Misgun Group

For real estate in totality, the RBI’s decision to keep the repo rate unchanged at 6.5% is an excellent decision. With the country’s economy doing exceptionally well and projections of decent GDP growth and inflation in check, the sector will continue to perform well in the coming times. However, price-sensitive affordable housing and real estate development in tier 2 and 3 cities are matters of concern, and a slight downward revision would have helped the real estate developers realise their housing dreams

Ashwinder R Singh

Ashwinder R. Singh, CEO Residential, Bhartiya Urban

I see the RBI’s decision as a nuanced balancing act between taming inflation and nurturing economic growth. With core inflation easing and GDP projections remaining robust, it’s imperative for the real estate sector to adapt swiftly. Embracing innovation, sustainability, and agile strategies will be key to navigating through the evolving landscape, ensuring resilience and unlocking new opportunities for sustainable growth in the sector.

Pawan Sharma, MD, Trisol RED

The RBI’s decision to keep repo rates at 6.5% for the seventh time will benefit the real estate sector. As interest rates stay constant, we anticipate increasing buyer confidence and continued interest in the industry. The sector has already been performing well over the last few years, the decision to keep the repo rate unchanged will benefit both prospective buyers and developers.

Mukul Bansal, MD, Motiaz

The RBI made a remarkable announcement by keeping the repo rates unchanged at 6.5% for the seventh consecutive time. This came along with two more welcome moves that predicted that real GDP growth would reach 7% in FY25 and that CPI inflation would stay at 4.5% in FY25. Altogether, these would increase the real estate sector’s vibrancy among prospective buyers. This also indicates RBI’s confidence in the state of the economy. This action will directly benefit prospective homeowners because loan interest rates won’t rise


Ashwani Kumar, Pyramid Infratech

The RBI’s decision to keep the repo rates unchanged at 6.50% will benefit developers and prospective buyers looking forward to investing in the sector. As there will be no increase in loan interest rates, it would bring them relief. Further, the government’s stand to balance inflation would give them additional benefits. This stability is anticipated to boost both the residential and commercial real estate sectors, opening compelling investment opportunities for buyers of all segments.

Piyush Kansal, Executive Director at Royale Estate Group

The RBI’s decision to keep repo rates unchanged at 6.50% is positive for the nation’s Real Estate market. Though it would have been outstanding if it had witnessed even a marginal decline, yet  this announcement will  surely increase confidence in the Indian economy’s growth trajectory and give the industry a boost. Sales in the premium and luxury categories of the real estate market have increased at a record pace since RBI first hit the pause button in February 2023. The number of new launches has sky-rocketed, while stocks of unsold inventories have sharply reduced

Rajjath Goel, Managing Director, MRG Group

The Reserve Bank has brought a sigh of relief to the real estate sector by announcing the stability in repo rates at 6.50% for the seventh time. This will boost the confidence of prospective buyers as the festive season approaches. Since it’s been more than a year since the repo rate was last raised, there have been no more adjustments, and buyers won’t have to bear the burden of increased loan interest rates. Buyers can continue investing in the real estate sector without any increased costs or financial fears. The decision by the authority is praiseworthy, and we welcome the move to curb inflation with this measure

Gurpal Singh Chawla, Managing Director, TREVOC

The Indian real estate sector has been strengthening over the past few years, and amidst this, the RBI’s decision to maintain the repo rate at 6.50% will benefit the sector. Over the last few years, the premium and luxury segment has witnessed an upsurge in sales. Buyers are keen to invest in the luxury housing sector, which has paved the way for the launch of new projects in this segment. Considering the upcoming festive season that will witness outstanding customer engagement, we anticipate this decision will benefit luxury real estate

Prateek Mittal, ED, Sushma Group

The RBI has maintained the repo rate at 6.5% for the past 12 months. This rate has long been taken into account by the real estate sector, including purchasers and banks—two of the most important wings of the industry. Stabilising the rates has brought a sense of satisfaction among the prospective buyers, keeping their faith intact. Repo rates remain fixed, a policy that helps the markets tremendously by guaranteeing a stable rate in home loan interests and a supportive stance. This will also help bring a boost to the sector as the festive season approaches, further encouraging buyers to invest in both residential as well as commercial developments


Avneesh Sood, Director Eros Group

As the RBI maintains the repo rate at 6.5%, it demonstrates a prudent approach towards balancing economic stability and growth. This decision, upheld for the seventh consecutive time, instills confidence within the real estate sector. With stable interest rates, homebuyers can proceed with assurance, fostering sustained development in the housing market. Notably, the stability in the repo rate directly impacts the lending landscape, with potential implications on home loan EMIs. For instance, with over 60% of home loans in India being on floating interest rates, any alteration in the repo rate could significantly influence borrowing costs. This steady stance by the RBI aligns with the ongoing efforts to bolster economic resilience, paving the way for a conducive environment for investment and growth in the real estate sector. We anticipate this stability to further buoy consumer sentiment and facilitate robust growth in the coming quarters