Mumbai
The realty players have said that the RBI’s move to maintain the current policy rate will stimulate growth within the housing market predicting a significant boon for prospective home buyers.
Incidentally, the RBI’s 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 transactions.
Prashant 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 policies.
We foresee an escalation in demand, particularly within the affordable and mid-segment housing markets. This trend is expected to persist, with hopes of a future reduction in the repo rate, Sharma noted.
Anshul Jain, Chief Executive India & SE Asia & APAC Tenant Representation, Cushman & Wakefield said, RBI’s decision to maintain the repo rate at 6.5 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, India’s CPI inflation has been stable for a considerable period, and we expect the RBI to capitalize on the prevailing healthy macro-economic climate and implement a rate cut in one of the subsequent MPC meets to boost consumer spending and demand.
