Repo Rate Remains Unchanged, Experts Expect A Steady Demand In Housing Sector

After a bi-monthly review held recently by the Monetary Policy Committee (MPC) of the RBI, the repo rate remained unchanged for the eighth time in a row which boosts confidence among real estate developers and experts that housing sector sales will witness a steady growth. Experts believe that this move by RBI reinforces stability and confidence among people in the real estate market.

This move by RBI will sustain the current growth trajectory and also enhance the affordability criteria of potential homebuyers and commercial investors. Since the repo rate stays steady, experts believe that this will ease the financial burden on borrowers, encouraging more investments and purchases. This can give rise to a positive demand in the housing sector by inviting new investments.

A steady repo rate also means that home loan interest rates will remain low which is a huge benefit for developers and homebuyers. According to ANAROCK data (One of the reputed real estate giants in the country), the mid-range and premium property segments together account for more than 55 percent of the supply. Together, they recorded approximately 76,555 units sold in the first three months of 2024, nearly 60 percent of total sales. Maintaining a steady repo rate can further boost sales and growth in the sector.

Despite these benefits, many developers and experts are demanding a cut in the repo rate to increase sales and growth of the sector. Since the numbers remained stagnant 8 times in a row and despite witnessing modest growth and sales, they believe a lower rate could enhance the growth numbers and see a rise in buyers and investments.

Source: Moneycontrol