RBI Maintains Repo Rate at 6.5%, Boosts Real Estate Sector

In a widely anticipated decision, the Reserve Bank of India (RBI) has opted to keep the repo rate steady at 6.5% for the eighth consecutive time. This decision, combined with robust GDP growth projections, a strong push for infrastructural development, and an increased pace of project launches, is expected to significantly bolster the real estate sector. While the industry has largely welcomed the RBI's decision, developers have highlighted the need for targeted interventions to support the affordable housing segment, which remains a critical area of concern as India strives to meet its ambitious housing goals.

Manoj Gaur, President of CREDAI NCR and CMD of Gaurs Group, remarked, "Even though a marginal reduction in the repo rate would have further boosted the real estate sector’s spirit, we welcome the RBI’s decision to maintain the interest rate. One area of concern is the affordable housing segment, which definitely requires an intervention. Overall, this is a welcome decision, and the real estate market, with an all-time low unsold stock and experiencing an all-time boom, welcomes this move. The decision supports the growth and stability of the sector."

Mohit Goel, MD of Omaxe Group, shared a similar sentiment: "By maintaining the repo rate at 6.5% for the eighth consecutive time, the RBI has again relieved both buyers and developers. The sector is experiencing remarkable growth, with increased interest in mid, premium, and luxury housing segments. Stable loan rates will benefit prospective buyers and sustain public confidence in the authorities. We expect this positive step to keep the real estate sector on an upward trajectory, benefiting both buyers and developers.”