Mr Prashant Rao, Managing Director, Poulomi Estates, a Hyderabad-based real estate developer
The apex bank announcement to maintain the current policy rates indicates the central bank’s firm stance in maintaining vigilance against inflationary pressures. The decision to keep interest rates stable is seen as a favorable factor that supports the ongoing demand. This stability not only reinforces confidence among potential homebuyers but also contributes to sustaining the positive momentum in the real estate market.
Mr. Ashwin Chadha, CEO, India Sotheby’s International Realty
The Reserve Bank of India’s decision to maintain unchanged interest rates reflects a cautious approach aimed at stabilizing inflation within the targeted band of 2%-6%. Notably, the RBI governor mentioned a balanced risk outlook, and the projection for Real GDP growth stands at 7% for the current fiscal year, with an anticipated range of 6.4% to 6.9% for the next year. Given these positive and strong economic indicators, the probability of a rate hike in the upcoming MPC review meeting appears negligible. We anticipated that the housing sector, particularly the luxury segment, will continue to thrive amid a well-performing economy and growing purchasing power of the citizens of the country.
Mr. Vimal Nadar, Senior Director, Research | Colliers India
On much expected lines, RBI kept the repo rate unchanged at 6.5% in the backdrop of strong buoyancy in economic growth and moderation of inflation levels. At 7% for FY 2023-24, India continues to be the fastest-growing economy amongst larger economies as global outlook continues to be clouded by higher inflation, supply constraints and climate change. Indian economy remains resilient due to a coordinated effort to control inflation while maintaining growth, augmenting supply and higher public & private investments.
As the housing market continues to outperform 2022 sales, an unchanged repo rate signals steady interest rates for prospective homebuyers and developers. This will aid a stronger 2023 with sales expected to be higher by 20-30% compared to 2022. Steady interest rates will continue to fuel sentiment buoyancy in the market, keeping the housing market on a higher growth trajectory as we begin 2024.