The RBI’s Monetary Policy Committee will convene from October 7 to 9 to make a crucial decision on the repo rate, which currently stands at 6.5%. Following recent rate cuts by the US Federal Reserve, there is growing anticipation of a similar move in India.
However, top experts believe that no change is likely in this meeting. While S&P Global predicts a rate cut in October, SBI disagrees, and UBS anticipates a possible reduction by December. If the repo rate remains stable, it could influence market investments and ease access to home loans and other financial products for consumers. The outcome of this meeting could have a significant impact on sectors like real estate, banking, and consumer finance.
Reports from major agencies and signals from RBI suggest that no change in the interest rate is expected in the upcoming October meeting. Held every two months, the RBI last raised rates to 6.5% in February 2023, and has kept them steady for nearly 20 months.
Pradeep Aggarwal, Founder & Chairman, Signature Global (India) Ltd said, “The RBI may held rates steady for the eighth time in a row, likely due to high food inflation despite overall CPI falling within their target range. Strong GDP growth in FY24 may have also influenced this decision. However, economists anticipate rate cuts of 25-50 basis points in the second half of the fiscal year if inflation keeps declining. Lower interest rates could further boost the real estate sector, which is already experiencing strong market demand from end-users. We expect the robust demand trend to stay healthy over the next few years, particularly in cities like Gurugram which is witnessing robust infrastructure development.
Sanjeev Arora, Director 360 Realtors said, “A stable monetary policy is always advantageous for the real estate market. If the repo rate remains unchanged in the coming week, it will be a positive development allowing residential and commercial projects to grow with confidence. Homebuyers will also benefit from affordable financing options. Additionally, any reduction in rates would further incentivize more customers to invest in homes, boosting demand across the sector.”
Nayan Raheja from Raheja Developers said, “A stable monetary policy consistently benefits the real estate sector. If the repo rate remains unchanged, it will help maintain market stability, fostering a positive environment for investors. We are already seeing growing demand for our new projects, and this stability will further drive that momentum. Our commitment to timely project completion and delivering the best facilities to homebuyers remains unwavering. Should the repo rate decrease, it will attract even more investment, enhancing growth opportunities. This is a pivotal time for us, and we remain focused on delivering high-quality results with dedication.”
Sanjay Sharma, Director of SKA Group, Says, After the Federal Reserve’s interest rate cuts, there is an expectation that the RBI may follow suit. However, whether rates are reduced or remain stable, it will be positive news for the real estate market and millions of homebuyers. Stable rates will keep home loans affordable, especially during the festive season, presenting a great opportunity for people to purchase homes. This will not only boost buyer interest but also provide developers with an ideal environment to launch new projects.
Sunil Kumar Jindal, Chief Executive Officer & Director ManSan Group said, “The real estate sector has recently experienced a surge in demand for luxury residential properties. With the upcoming monetary policy on the horizon, maintaining the current stability would be advantageous for the sector, as it would enhance the demand for residential properties and enable developers to create more projects that meet buyers’ needs. Additionally, stable home loan rates will provide significant relief to prospective homebuyers. As luxury housing continues to gain traction, this stability will likely enhance buyer interest in luxury real estate, motivating developers to create more projects.”
Ravindra Gandhi, Managing Director of Tirasya Estates said, “We anticpate the RBI will maintain the repo rate, which is a positive development for real estate developers. With a notable increase in demand within the housing sector, the stability in loan rates provides much-needed relief to potential buyers, allowing them to invest without the pressure of rising interest rates. As we look ahead to the upcoming monetary policy review, we hope for a slight decrease in the repo rate. Such a move would strengthen buyer interest in the sector and encourage developers to create more projects.
Harsh Gupta, CEO, Sundream Group said, “The sector is optimistic that the RBI will maintain the repo rate in its upcoming decision. The stability will not only encourage property investments but also pave the way for increased sales. With rising economic growth, stable interest rates will benefit buyers and developers, further strengthening the commercial market and offering investment opportunities to all. Given real estate’s sensitivity to price fluctuations, the RBI’s steady approach is expected to provide a valuable boost to the industry.”
Saurabh Sharma, Sales Director, Trisol Red said, “If the repo rate remains stable this time too in the coming week, it will prove to be very positive for us. This will enable us to move forward strongly with our upcoming residential and commercial projects. Homebuyers will be more likely to get affordable financing options, which will further strengthen their buying confidence. At the same time, if there is any cut in the repo rate, it will further reduce the home loan rates, which will further encourage purchases.”
Ajendra Singh, Vice President of Sales and Marketing at Spectrum Metro, stated that following the Federal Reserve’s decision, the market anticipates a potential repo rate cut by the RBI. However, even if the rate remains stable, considering inflation and deflation concerns, it would be a positive step for both commercial and residential real estate. This stability would boost investment and benefit the sector directly.
Piyush Kansal, Executive Director of Royal Estate Group, added that with rising market demand, We hope the RBI will maintain current interest rates. There is also optimism for a rate reduction, given the Federal Reserve’s recent cuts. Whether the rates are reduced or stay stable, it will bring stability to the real estate sector and offer relief to buyers. Stable interest rates would create an ideal time for homebuyers and attract more investment into the market.
