The Shaktikanta Das-led Monetary Policy Committee unanimously opted to maintain the status quo of the repo rate at 6.50 percent for a third straight meeting in an effort to keep an upward momentum in the economic scenario of the country. The MPC has maintained its “accommodative” stance on the interest rate hike. The real estate developers have received the decision warmly which will help in revving up the positive developments in the sector.
Vikas Garg, Joint Managing Director, Ganga Realty
The decision will further help in stabilizing the housing demand and maintaining a positive equilibrium in the property markets. By keeping the repo rate unchanged, the RBI has maintained the monetary policy of an industry-friendly stand that will support the consolidation of trends which will churn out great results for the real estate sector. It will also help in keeping the macroeconomic conditions steady and perfectly aligns with RBI’s commitment to stamp out inflationary concerns and bring it down to 4%.
Saransh Trehan, Managing Director, Trehan Group
The maintenance of the repo rate stand by leaving it unchanged will keep the growth statistics even-grounded for the real estate sector. The housing demand has been rising continuously and the RBI MPC policy continues to add great value to property-friendly sentiments of the buyers planning to soak in money in real estate assets. The inflationary rates will further crater down by this RBI move which is undoubtedly decreasing but continues to pinch the construction and allied sectors and stymie the overall economic climate. The RBI has been impelled to take decisive actions to achieve its inflation target of 4% and by keeping the repo rates unchanged, it will significantly achieve its objectives.
Overall, the real estate sector has only to gain and nothing to lose from the current RBI repo rate stance. The housing sales have been pretty impressive with not only luxury but also premium and mid-segment bracket homes regaining its hold in the markets. The move will motivate and incentivise buyers to invest in property markets even more.