Housing market to remain buoyant with RBI keeping key interest rate unchanged: Realtors

Real estate industry expects housing demand to remain strong with the RBI keeping key interest rate unchanged and is hopeful for a repo rate cut in next round of monetary policy to boost growth.

The Reserve Bank of India (RBI) on Thursday decided to keep the repo rate unchanged at 6.5 per cent.

Commenting on the development, CREDAI National President Boman Irani said, "... We expect both housing supply and demand to sustain its ongoing momentum." "However, given that the inflation is at an 18-month low, there is scope for the RBI to reduce repo rates in the upcoming MPC meetings, to stimulate growth across all industries," Irani added.

Naredco President Rajan Bandelkar hailed the RBI move, saying it will help the housing sector that has been performing well from the past two years. "Nonetheless, the sector needed announcements that could further fuel the growth," he added.

With the festive season in tailwinds, Naredco Vice Chairman Niranjan Hiranandani said a hiatus in interest rate hike would boost sales velocity.

Real estate consultant Anarock Chairman Anuj Puri said, "The unchanged repo rate can help maintain the momentum in housing sales, which has so far been firing on all cylinders in 2023." Housing sales in January-March 2023 breached the one lakh mark at 1.14 lakh units across the top 7 cities, he added.

Realty firm Signature Global Chairman Pradeep Aggarwal said this demonstrates a positive intent towards supporting the housing market and benefiting homebuyers.

"...The pause in rate hikes will instil a sense of optimism among borrowers and we expect the housing sales momentum to continue," India Sotheby's International Realty MD Amit Goyal said. Atul Banshal, Director-Finance, Omaxe Ltd, hoped that the RBI would opt for a policy rate reduction in the next review meeting.

Knight Frank India CMD Shishir Baijal said, "We believe that this status quo will facilitate positive decision-making for homebuyers." Colliers India Head of Research Vimal Nadar said, "as home loan rates are already at elevated levels of 9 per cent and above, this is a significant breather for lenders, developers & homebuyers." Savills India CEO Anurag Mathur said home loan EMIs will remain unchanged in the near-term, leading to sustained demand across various housing categories.