Real estate sector welcomes RBI's move to keep repo rate unchanged, says stable EMIs to support housing demand

Industry players said the RBI's decision provides predictability for both developers and homebuyers at a time when construction costs remain under pressure due to global geopolitical tensions.

Shrinivas Rao, CEO of Vestian, said the decision "is likely to keep mortgage rates steady and competitive" even as input costs remain elevated due to the ongoing West Asia crisis.

He added that the pause in rates could help "cushion the impact of rising input costs on demand and allow stakeholders to recalibrate their strategies."

According to Vimal Nadar, Head of Research at Colliers India, the central bank's move reflects a "wait-and-watch approach" amid geopolitical tensions and volatility in commodity prices.

"While inflation has inched up due to crude price fluctuations, it remains relatively contained with a projection of 4.6 per cent," he noted.

However, he cautioned that supply chain disruptions and rising material costs could "slow down ongoing and future construction activities".

Square Yards Co-founder and CFO Piyush Bothra said the unchanged repo rate brings "much-needed predictability for homebuyers and the real estate sector."

"With borrowing costs steady, demand in mid-income and premium housing segments is expected to remain resilient," he said.

Real estate body CREDAI also welcomed the RBI's decision. Its President Shekhar G Patel said the policy stance is a "balanced and prudent approach" given global geopolitical tensions and supply chain disruptions.

"A stable interest rate environment provides much-needed visibility to both developers and homebuyers," he said, adding that it will help sustain housing demand across segments.

Industry experts said the RBI's decision to keep rates unchanged, while maintaining a neutral stance, will support the sector by ensuring stable borrowing costs even as developers face pressure from rising construction expenses. (ANI)