Mumbai: The real estate sector has welcomed the Reserve Bank of India’s decision to maintain the repo rate at 6.5% for the 10th consecutive time, especially during the festive season. With interest rates remaining stable, equated monthly instalments (EMIs) for home loans are expected to stay manageable, encouraging both current and prospective homeowners.
This stability is anticipated to drive increased home sales in the upcoming months, providing a positive outlook for the housing sector. While some developers feel that a cut of 25 basis points could have energised festive sales and buoyed market sentiment, they say the current approach represents a prudent approach to ensuring economic stability. Dr.
Niranjan Hiranandani, Chairman of NAREDCO and Hiranandani Group, said, “Given the fact that real estate cycles persist longer, the current northbound momentum looks to continue for the foreseeable future owing to conducive economic weather. With India's projected GDP growth at 7.2%, demand-supply dynamics are expected to remain healthy.
The increasing appetite for homeownership, heightened interest in upgrading to luxury homes, and rising investments in real estate assets will further sustain strong demand in the sector.” Prashant Sharma, President, NAREDCO Maharashtra feels that the decision is particularly important for the real estate sector as it signals a steady interest rate environment in the near term, which can help sustain the ongoing demand for home loans. “A.