Real estate experts said the RBI’s decision to maintain the repo rate at 6.5% during the ongoing festive season is indeed a boon for home buyers.
Mumbai: The Reserve Bank of India’s monetary policy committee during its October review meeting kept overall 2023-24 growth and inflation unchanged from their earlier estimates, even as the central bank flagged concerns about high inflation.
“So far as the Reserve Bank is concerned, we have identified high inflation as a major risk to macroeconomic stability and sustainable growth,” RBI Governor Shakitkanta Das said.
According to RBI, the retail inflation is projected at 5.4 per cent for 2023-24, with Q2 (Jul-Sep) at 6.4 per cent, Q3 (Oct-Dec) at 5.6 per cent and Q4 (Jan-Mar) at 5.2 per cent. For Q1 (2024-25 fiscal), it is projected at 5.2 per cent.
How Does Repo Rate Impact Home Buyers, Loan EMIs?
The status quo by the RBI is likely to bring some relief to home buyers and loan seekers and those who are already paying EMIs as the payouts will be maintained as it is.
Speaking to India.com, Rishabh Siroya, Founder of Siroya Corp, said the decision by the RBI’s Monetary Policy Committee (MPC) to keep the repo rate unchanged at 6.5% is undeniably favorable news for home buyers as well as for home borrowers.
Much-needed Relief For Home Buyers
He added that the move signifies stability and continuity in interest rates, providing much-needed relief and confidence to those aspiring to own a home.
“A steady repo rate translates into lower borrowing costs, making home loans more affordable. It not only encourages prospective buyers but also supports the housing sector’s growth, ultimately contributing to the overall economic development.
Pratik Kataria, Director Sainath Developers, said the RBI’s decision to maintain the repo rate at 6.50% is poised to offer a favorable outcome for the home buyers and home loan borrowers and it will have a positive impact for home buyers and real estate sector, which will instill a sense of stability and optimism.
Big Boost For Real Estate Participants
“A constant borrowing cost facilitates home purchases and amplifies construction endeavors. This also reveals the RBI’s commitment to nurturing gradual economic expansion while upholding equilibrium, fostering a constructive atmosphere that bolsters confidence among real estate participants. Moreover, developers stand to gain from this, as it secures foreseeable borrowing expenses, simplifying project strategizing and implementation,” Pratik Kataria added.
Anoop Kumar Bhargava, CEO and Director of Empire Centrum said the RBI MPC’s decision to maintain the repo rate at 6.5% during the ongoing festive season is indeed a boon for home buyers.
He added that the move acknowledges the significance of this period when many people plan to make significant financial commitments like buying a home.
“A stable interest rate environment not only fosters confidence among potential buyers but also makes housing loans more accessible and affordable. It aligns with the spirit of celebration and encourages economic activity in the real estate sector, benefitting both buyers and the industry as a whole,” Bhargava added.