RBI has kept the repo rates unchanged for the fourth time in a row since Feb 2023, which is a good sign for the real estate sector as it implies that the cost of borrowing for banks is stable. A stable repo rate could contribute to a more predictable economic environment, potentially influencing the market dynamics.
Yashank Wason, Managing Director, Royal Green Realty said, “In the festive season, this is going to be bonus for the homebuyers as it keeps borrowing costs consistent, potentially encouraging real estate investment. The sentiment driven real estate will benefit as steady interest rates may boost confidence leading to increased activity in the market. Commercial real estate, which is closely linked to economic activities, may also see effects in terms of demand for office spaces and commercial properties.”
Yashank added, “However, the impact of an unchanged repo rate on the Indian real estate sector is interconnected with various economic factors. While it can contribute to stability in borrowing costs and investor confidence, other macroeconomic elements also play a significant role in shaping the real estate environment.”