Real estate developers are anxiously awaiting the RBI MPC decision tomorrow and desperately hoping for a rate cut, and failing that, at least a relaxation in stance that could hold out hopes for a rate cut in the future.
Affordability has become important and home sales trends show that it is those in the upper income brackets who are keeping the momentum going. But property prices have increased sharply over the last one year and monthly mortgage instalments are starting to bite into buyers’ wallets. Here are some voices from the real estate sector and what they hope for.
Raheja Developers’ Vice President, Mohit Kalia: Reduction in the repo rate will provide relief to homebuyers from rising loan interest rates, encouraging them to invest. At a time when real estate prices are experiencing fluctuations, a reduction in interest rates will bring stability to the market. This move will not only ease the burden of EMIs on buyers but also boost their confidence in making decisions.
Pradeep Aggarwal, Founder & Chairman, Signature Global: Any potential easing of interest rates could further stimulate demand, creating new opportunities for growth and reinforcing the sector’s vital role in driving India’s economic progress.
Amit Modi, Director of County Group: We are focusing on the possibility of a reduction in interest rates in the December quarter. This would be long-awaited news for the real estate sector. While its impact may not be significant on luxury housing, it could prove to be a big step for the sector as a whole. Particularly for the affordable housing segment, it could act as a renewed stimulus, strengthening this segment once again.
Gautam Kanodia, Founder KREEVA and Kanodia group: We anticipate that there might be a reduction in the repo rate. Lower interest rates would act as a catalyst for encouraging people planning to take home loans. Such a move would further strengthen the housing demand across cities, especially in the emerging and new micro-markets
Saurabh Saharan, Group Managing Director of HCBS Development: The unchanged repo rate for close to two years has ensured stability in the market. Looking ahead, we are hopeful that the RBI may decide to reduce the repo rate this time. Should this happen, home loan interest rates will likely decrease, not only easing the EMI burden on homebuyers but also encouraging homebuyers sitting at the fence to make the move.
