RBI’s move to boost housing sales, say realtors

Vijay C Roy

Chandigarh, October 6

The RBI’s move to keep policy rate and monetary stance unchanged will boost consumer sentiments, say analysts. According to them, the unchanged repo rate has proved as a festive bonanza for overall consumer market as it looks bullish across sectors, particularly the automobile and housing markets, which in many ways reflect the health of the economy.

Will act as catalyst for growth

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We are entering the festive quarter with a strong momentum in housing sales, and unchanged interest rates will act as a catalyst for growth in the residential market.

Anuj Puri, Chairman, Anarock Group

“We are entering the festive quarter with a strong momentum in housing sales, and unchanged interest rates will act as a catalyst for growth in the residential market. As per Anarock research, housing sales across the top 7 cities created a new peak in Q3 2023 and stood at 1,20,280 units as against over 88,230 units sold in Q3 2022, thus recording 36% yearly growth. Thanks to the stable repo rate and the resultantly stable home loan interest rates, we can expect the momentum to continue,” said Anuj Puri, chairman, Anarock Group.

As the RBI kept the repo rate unchanged at 6.5%, banks will have more legroom to offer homebuyers better incentives during the upcoming festive season. Considering the demand for residential property in the country is at an all-time high right now, this augurs remarkably well for India’s real estate.

Experts are of the view that the upcoming festive season will boost consumption levels. A robust kharif crop performance will further bolster economic growth. “We see great promise for buoyant economic activity and consequently, growth in commercial and retail credit. Taking a cue from what the RBI Governor said, the turning pitch should not deter us from playing our shots,” said Umesh Revankar, executive vice-chairman, Shriram Finance.

Rajesh Sharma, MD, Capri Global Capital Ltd., says the RBI’s move underscores the delicate balance between inflation alignment and growth support. The announcement is an assurance that the Central bank’s actions would continue to be calibrated, measured, and nimble depending upon the unfolding dynamics of inflation and economic activity.