As anticipated, Shaktikanta Das, the Governor of the Reserve Bank of India (RBI), announced on Friday that the Monetary Policy Committee (MPC) has unanimously chosen to keep the repo rate steady at 6.50 percent.
RBI Repo Rate October 2023
Presenting the policy, Das stated, “After a thorough evaluation of the evolving macroeconomic and financial circumstances and prospects, the RBIs Monetary Policy Committee has unanimously resolved to maintain the Repo Rate at 6.5 percent.”
The central bank has retained its real GDP growth projection for FY24 at 6.5%, and the CPI inflation forecast for FY24 remains at 5.4%.
The RBIs decision to maintain the Repo Rate has been positively received by the real estate sector, especially those involved in the housing segment. Although the decision was as expected, it comes as a relief to both new and existing housing loan borrowers, as a pause in the repo rate implies no increase in home loan EMIs. Here are the views of prominent figures in the real estate sector on the RBIs announcement:
Deepak Kapoor, Director, Gulshan Group
The current RBI decision to keep interest rates at their current levels is positive for the luxury home market. Luxury real estate generally experiences less of an impact from high-interest rates than cheap housing. However, a further increase would have put the rates alarmingly close to their breaking point. We anticipate it to promote expansion, which will be beneficial for luxury real estate, especially in the upcoming festive season that will witness remarkable customer engagements.
Salil Kumar, Director, CRC Group
RBI’s decision to maintain the repo rates at 6.5% will bring positive developments in the real estate sector. Less volatility in the loan interest rates would increase buyer and developer confidence, fostering long-term growth. The development of both residential and commercial real estate developments is accelerated by lower financing rates, which also boost employment in the construction industry. Interest rate stability will boost investment across a range of markets, from first-time buyers to middle-class strata.
Vikas Bhasin, Chairman and Managing Director of Saya Group
The real estate industry has been strengthening over the past few years, and RBIs decision to keep the repo rates unchanged would help accelerate the trend. The current 6.50% repo rate is well received by the market, and the developers have planned exciting new launches in view of the upcoming festive season. We anticipate a record-breaking performance from the housing sector this Diwali because demand for upscale and luxurious properties is at an all-time high.
Mohit Goel, MD, Omaxe Group
One year ago, the repo rate was 5.9% (September 2022). Despite RBI maintaining the status quo in the last few MPC meets, including the current quarter, the Repo Rate at 6.5% is still high. Even though the real estate sector has remained unaffected and continues performing well, we hope RBI meets its objective of reining inflation. On a positive note, the RBI’s stance imparts the sector with the hope that the chances of a rate increase in the future are slim.
Prateek Mittal, Executive Director, Sushma Group
RBI has decided to maintain the repo rate for the fourth consecutive time and kept it unchanged at 6.5%. This reflects RBI’s confidence in the economic outlook. Potential home buyers will directly benefit from this move as there will be no increase in loan interest rates. This step will ensure that the real estate sector is able to reach new heights without facing any financial challenges. It is a step to provide relief to the common man and home buyers.
Rajjath Goel. Managing Director, MRG Group
The festive season is about to begin, and the Reserve Bank has greatly relieved prospective buyers by keeping the repo rates unchanged. The repo rate was last increased in February, since then there have been no further changes in the repo rate, and no additional charges will be imposed on the buyers. People will now come forward to buy houses, vehicles and other goods without any financial worries. Not increasing the repo rate during the festive season is indeed a commendable step.
Tejpreet Singh Gill, MD Gillco Group
The unchanging repo rates, a policy that greatly benefits the markets by ensuring a stable rate and a supportive posture, persist. However, there are specific challenges within the real estate market that require addressing. With the festive season on the horizon, this decision will serve as a blessing for the real estate sector.
Surender Kaushik, Managing Director, Aryan Realty Infratech Pvt Ltd
The decision to maintain the repo rate at 6.5% without any changes is a meaningful indicator of RBIs evolving perspective. Despite the hurdles presented by elevated EMIs and interest rates, this choice is likely to boost buyers confidence and stimulate the growth of the sector. The positive outlook for the real estate market in the NCR region is anticipated to stimulate investments in high-end projects.
Ajendra Kumar, Vice President (Sales & Marketing) Spectrum Metro
The RBIs choice to maintain the repo rate at 6.50 percent represents a constructive move aimed at alleviating the financial strain on prospective buyers. The rise in monthly EMIs over the recent months has been challenging for individuals in the middle and lower-income brackets. This decision is poised to provide a significant incentive for these potential buyers in the commercial sector to go ahead with their property purchases. Furthermore, it is anticipated to stimulate the development of affordable and mid-range commercial projects, nurture a robust real estate market, and facilitate more individuals in achieving their dreams of property ownership.