The RBI’s decision to hold rates steady aligns with expectations, to keep inflation under check. While the recent rate cut by the US Federal Reserve has sparked similar hopes in India, the domestic situation remains distinct, with the central bank prioritizing inflation management within its target range. Yet policy stability bodes well in the ongoing festive season which promises to be a significant phase in terms of real estate demand as the industry is hopeful of the continued rise in residential sales. As and when a rate cut is anticipated soon, which, when implemented, will benefit both homebuyers and real estate developers to capitalize on the market and strengthen overall economic growth.
Mr Pradeep Aggarwal, Founder & Chairman, Signature Global (India) Ltd
Status quo is the next best outcome
The apex bank’s stance to keep the rates unchanged for the tenth consecutive time is on the expected lines. While the real estate industry was hoping for an interest rate reduction, a status quo is the next best outcome for the industry. Stable rates ensure consistent EMIs, giving homebuyers the confidence to plan their purchases. Furthermore, the expectation of potential rate cuts in the coming months is also boosting optimism in the real estate market and we expect the robustness in demand to continue over the next few years.
Mr Mohit Jain, Managing Director, Krisumi Corporation
Demand likely to continue
The RBI’s decision to keep the repo rate unchanged was expected, considering ongoing inflation concerns and global geopolitical uncertainties. However, with each MPC meeting, the likelihood of a rate cut increases, and we could see one in the coming reviews if current improvements continue. Currently, home loan interest rates hover around 9.25%, a level that remains manageable for many borrowers. Also, given the stable rates for over two years, real estate demand has consistently grown, fuelled by rising incomes, lifestyle upgrades, and economic growth. We are already seeing strong demand this festive season, which is likely to continue, regardless of any changes in interest rates.
Mr. Aman Sarin, Director & Chief Executive Officer, Anant Raj Limited
Offers to the rescue
The RBI’s decision to keep the repo rate unchanged wasn’t a surprise, though many expected a rate cut, which could have boosted retail loan demand during the festive season. However, lending institutions are stepping up with festive offers. For example, SBI is offering car loans starting at 9.05% interest with zero processing fees, providing borrowers with significant savings. HDFC Bank has launched its “Festive Treats” campaign, with car loans starting from 9.40% interest and up to 100% financing on select models, along with special cashback and down payment discounts. These offers are aimed at capitalizing on the festive demand and helping customers secure better deals.
Mr Raoul Kapoor, Co-CEO, Andromeda Sales and Distribution Pvt Ltd
Festive push
The property market has exhibited consistent growth despite stable interest rates. The property market looks buoyant and both homes sales and launches will get a festive push to stabilise the total number at 2024 levels after experiencing a record high 2023. A rate cut would only add to this buoyancy.
– Samir Jasuja, Founder & CEO, PropEquity
Economic developments could play out
In view of the ongoing geo-political tensions in the Middle East and the fear of food and oil inflation inching up, the RBI’s move to maintain status quo on interest rate is prudent. While growth and inflation projections are broadly in lines with RBI’s estimates, the global political and economic developments could play out in the coming quarters on India’s growth and inflation.
Sanju Bhadana, MD, 4S Developers
Rate cut would have been an ideal scenario
We expected a slight cut in repo rate considering the fact that property sales and launches have been slowing down over the last three quarters of 2024. Amid global uncertainties and fear of growth slowing down and inflation going up, a rate cut would have been an ideal scenario to boost the property market.
Shiwang Suraj, founder and director of Gurugram-based property consulting firm InfraMantra
Rate cut would give boost
A rate cut would have helped in reducing interest on home loans thereby increasing homebuyers’ participation in the property market. This would have given a boost to the already flagging housing sales and launches during the festive season.
