RBI’s move to maintain current policy rate will stimulate growth in housing, say realty players

The realty players have said that the RBIrsquos move to maintain the current policy rate will stimulate growth within the housing market predicting a significant boon for prospective home buyersIncidentally the RBIs Friday decision came days ahead of the auspicious Gudi Padwa launch of the Hindu calendar year as the realty players hope to witness higher property transactionsPrashant Sharma President of the National Real Estate Development Council NAREDCO Maharashtra attributed a recent surge in home sales to this positive financial environment bolstered by optimistic consumer sentiment and supportive government policiesWe foresee an escalation in demand particularly within the affordable and midsegment housing markets This trend is expected to persist with hopes of a future reduction in the repo rate Sharma notedAnshul Jain Chief Executive India amp SE Asia amp APAC Tenant Representation Cushman amp Wakefield said RBIrsquos decision to maintain the repo rate at 65 per cent is on expected lines However a rate cut anticipated later this year would provide a boost to the residential sector particularly affordable housing Though the central bank has been showing its deep commitment to bringing the headline inflation down to around 4 per cent Indiarsquos CPI inflation has been stable for a considerable period and we expect the RBI to capitalize on the prevailing healthy macroeconomic climate and implement a rate cut in one of the subsequent MPC meets to boost consumer spending and demandDr Samantak Das Chief Economist and Head Research amp REIS India JLL observed that the RBIs decision to maintain the status quo is a welcome development for the Indian housing marketThe policy continuity fosters a predictable interest rate environment which is crucial for both homebuyers and developers We anticipate sustained demand especially in the midtier and highincome segments The momentum is slated to continue with the current pause and potential rate cuts in H2 FY25 expected to support the growth cycle in the sector This scenario would further incentivize buyers on the sidelines and is expected to significantly boost overall market sentiment pushing residential sales in the top seven markets of India to another historic high of over 300000 units in 2024rsquorsquoIndiarsquos residential markets are currently in the midst of a sustained bull run Sales in the country rose to over 74000 units in Q1 2024 up 9 per cent from the quarterly run rate of 2023 If controlled inflation persists the possibility of future rate cuts becomes more realistic This would lead to increased affordability levels in 2024 which will be second only to 2021 peak affordability levels reported in JLLrsquos Home Purchase Affordability IndexFurthermore Vimal Nadar Senior Director amp Head of Research at Colliers India said for the real estate sector the decision offers a sense of continuity and predictability It also provides a solid foundation for future investment and development initiativesDevelopers and investors can capitalise on the conducive environment to explore new opportunities and drive innovation in the market Moreover unchanged lending rates continue to present EMIdependent buyers with a rational opportunity to fulfil their homeownership aspirations With anticipation of rate cuts in the ongoing fiscal year the momentum in the residential segment is likely to persist he saidDharmendra Raichura VP Finance at Ashar Group said that RBIs decision extends favourable conditions for potential homebuyers contributing to resilience and vitality in the real estate sector Consistent home loan rates enhance consumer confidence underpinning investment decisions and fostering an environment conducive to sustained developmentrsquorsquo he saidThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever