“Despite the possibility of July and August core inflation in 2023, the central bank has maintained the status quo. The repo rate remained unchanged at 6.5%. This increases confidence in the market. It predicts that inflation can be controlled. Stable market conditions will continue. The uneven distribution of monsoons and their negative impact on the cultivation of kharif crops may pose a challenge to containing inflation. This may lead to prolonged tight monetary policy, which will affect real estate activity.” – Srinivas Rao, CEO, Westin.
Relief to buyers…
“RBI has kept the benchmark lending rates unchanged for the fourth consecutive time. The fixed repo rate of 6.5% since February is providing relief to EMI-oriented home buyers, especially in these times of elevated inflation levels. Developers are likely to announce festive offers in the next few months. Home sales will pick up due to a stable financing environment. Overall, the festive atmosphere, favorable attitude of the RBI, and offers from various financial institutions and developers will keep 2023 exciting. Keeps momentum strong in the residential segment in major Indian cities.” Vimal Nadar, Head of Research, Colliers India.
A welcome step…
“Keeping the interest rate at the same level is a welcome step in monetary policy. This will help in the sustainable recovery of economic growth. Needless to say, the housing and real estate sectors will benefit from this decision. Demand for residential properties will remain strong in the coming quarters. The cost of borrowing for corporations is also at a reasonable level. This is beneficial to the economy as the corporate sector has the flexibility to continue capital expenditure and investment.” – Amit Sarin, MD, Anantraj Ltd.
A boon for the housing sector…
“RBI’s decision to keep the interest rate unchanged is a boon for the housing sector and the real estate sector. During the festive season, demand for housing, especially mid- and luxury housing, is expected to remain strong over the next few months. The ever-increasing trend towards buying comfortable living spaces will only get stronger in the near future.”
– Mohit Jain, Managing Director, Krisumi Corporation.
