Relief for Homebuyers in Gurgaon as Repo Rates Remain Unchanged

Relief for Homebuyers in Gurgaon as Repo Rates Remain Unchanged

Much against general expectations, the RBI has kept the repo rates unchanged at 6.5%.

This particularly gives relief to affordable and mid segment homebuyers who feared a possible rate hike on Thursday, making property buying via home loans even harder.

The RBI has raised the repo rate by a cumulative 250 basis points since May 2022, thereby pushing up interest rates for homebuyers to 9.5% and above.

The RBI’s decision to keep the repo rates unchanged comes as a welcome respite to homebuyers.

Vimal Nadar, head of research at Colliers India, says “The RBI, has decided to keep its repo rate unchanged at 6.5%, with its stance at “withdraw of accommodation” and is an encouraging sign. While challenges in geopolitics and the resultant downside risks to growth prevail, the next few months will be critical and will define the course for 2023. It is a positive sign that the headline inflation is moderating, however it continues to remain above RBI’s target and thus remains a monitorable”.

Anshuman Sharma, president, sales & marketing, Navraj Group, said “The dearness of property prices and home loan interest rates have caused many homebuyers to put their plans of home investments on the back burner. Unchanged repo rate might serve as a sign of encouragement as it might invigorate some kind of price rationalisation decisions in the real estate industry. As a humble request, I would like to appeal to RBI to cogitate on minimising repo rates, as the inflation radar has seen an active contraction over the past few months.

Ankit Kansal, founder and MD, Axon Developers, said “RBI has increased the repo rate over six iterations in the past. However, this time around it has kept it unchanged underscoring healthy macroeconomic sentiments and a rate of inflation which is within the danger zone. This will not just help the realty sector and millions of Indian homebuyers but also support 250 allied industries, thereby the positive impact cascading all around”.

Saransh Trehan, managing director, Trehan Group, said “The RBI has changed its stance and paused the repo rate at 6.5%. It is a huge reliever for home buyers and realtors in the period which has seen a massive jump in home prices, properties, and bank loan schemes. If the move does not guarantee a decrease in skyrocketing prices of homes, it assures that there is no reason for a further upswing in prices. We hope that RBI also considers lowering the repo rate to stabilise market prices and bring a good majority of buyers to the investment circles”.

Anuj Puri, chairman of Anarock group, said “It bears keeping in mind that after the remarkable performance in Q1 2023, the housing market is now staring at major headwinds with layoffs, rising property prices, etc. which will pose a challenge in the short-term. The respite of home loan rates remaining unchanged is therefore very welcome”.

Ashwani Kumar, Pyramid Infratech, said “In a laudable move, the RBI has acceded to the demands of the real estate industry and kept the repo rate unchanged after a year. The move will alleviate the concerns of homebuyers who are not happy with the constant quarter-to-quarter elevation in home prices and bank home loan mortgage rates. It will also relieve real estate developers facing the heat of stalled projects and high construction material costs. The decision is not precisely the distillation of our demands but has also given us hope that the RBI will refrain from going for a series of repo rate hikes, given compressed inflationary challenges”.

Narayan Bhadana, MD, 4S Group, said “The RBI made a wise call and decided to keep the repo rate unchanged. The decision also hints towards the changing RBI’s ideological dispensation. It is now shifting from an anti-inflationary thought guideline to an industry revival policy stance. We hope that the RBI now ruminates over reducing repo rates to bolster housing sector.

Amit Goyal, CEO, India Sotheby’s International Realty, said “Despite inflationary pressure and other geopolitical issues, RBI decision to maintain the status quo on policy rates is good news for home buyers. Rising home loan interest rates has become a growing concern for both home buyers and supply-side stakeholders. To some extent the higher home loan interest rates have dampened the demand for affordable and mid-segment housing as buyers in these segments are more price-sensitive. While the luxury and high-end segments have not been significantly impacted yet, further increases could have affected the overall industry”.

Sulekh Jain, chairman , DPL Homes, said “Finally, the RBI has announced a much-needed move and decided to take into account the long-pending demands of the real estate sector. The decision is not entirely what we were expecting, but atleast the RBI did not go for another hike, which is a great relief in itself. The continuous cycle of increasing home prices, which was a consequence of hikes in repo rates and home loan interest rates, has drifted many homebuyers from the property markets who might consider buying homes”.

Mohit Jain, managing director, Krisumi Corporation, said the real estate market in Gurgaon has experienced substantial growth in demand and price due to various infrastructure developments and enhanced connectivity. The rise in circle rates is consistent with the increasing property prices and serves to confirm the appreciation in value.

Source : TOI

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