Shrinivas Rao, FRICS, CEO, Vestian
“RBI has kept the repo rate unchanged at 6.5% for the 7th time in a row. This decision is in line with the current situation as inflation remains out of the target range of RBI, due to soaring food prices in the past couple of months.”
Mr. Vimal Nadar, Senior Director & Head, Research at Colliers India
“In a testament to stability, the Reserve Bank of India has maintained the repo rate at 6.5% for the 7th consecutive time in its first MPC meeting for FY2025. Against the backdrop of inflation cooling down in recent months and a projected GDP growth rate of 7% for FY2025, the decision to uphold benchmark lending rates reinforces investor confidence.
For the real estate sector, the decision offers a sense of continuity and predictability. It also provides a solid foundation for future investment and development initiatives. Developers and investors can capitalize on the conducive environment to explore new opportunities and drive innovation in the market. Moreover, unchanged lending rates continue to present EMI dependent buyers a rational opportunity to fulfil their home-ownership aspirations. With anticipation of rate cuts in the ongoing fiscal year, the momentum in residential segment is likely to persist.”
Mr Ashwin Chadha, CEO, India Sotheby’s International Realty
Once again, the RBI has maintained its policy rates, aligning with expectations. However, the encouraging news is that inflation has decreased over the past couple of months, while growth prospects have improved.
Economic growth has remained robust, evidenced by the above-expected GDP growth during Q3 FY’24. Recently, the World Bank also revised India’s FY25 growth projection upwards to 6.6%, with FY24 GDP estimated at 7.5%.
This strong growth trajectory is expected to sustain adequate demand, particularly in the luxury segment of the real estate market.
Stable rates are poised to support the housing market, and we anticipate a potential reduction in interest rates in the upcoming MPC meetings.
Mr. Raoul Kapoor, Co-CEO, Andromeda Sales and Distribution Pvt Ltd
For the past couple of years, the RBI’s policy has closely mirrored that of the Federal Reserve, and this trend persists. However, in the current Monetary Policy Committee (MPC) meeting, the governor highlighted how inflation is gradually decreasing and emphasized the robust growth in India’s economic landscape.
These domestic conditions of diminishing inflation and promising growth prospects set the stage for a potential rate cut. We anticipate that in the upcoming MPC meetings, the RBI will likely announce a rate cut ranging from 25 to 50 basis points, provided the current conditions continue to improve.
Interestingly, the impact of rate increases has had minimal effect on the demand for home loans, which continues to rise. At Andromeda, we have observed approximately a 25% growth in the total disbursement of loans, including home loans, loans against property, and personal loans, during FY24.
