Housing sales to get boost during festival season: Realtors on RBI's status quo on interest rate

New Delhi: Housing sales will get a boost during the upcoming festive season with the RBI deciding on Friday to keep repo rate unchanged, according to real estate developers.

However, builders demanded that the key interest rate should be brought down in the next RBI policy review.

Commenting on the RBI policy, realtors' apex body CREDAI President Boman Irani said, "This move will help maintain the momentum in housing sales during the festive season." Many investors and fence sitters would come to the fore and buy residential properties, he added.

"We however reiterate the crucial need of a rate cut in the next MPC meet as current interest rates have been the highest among the last few years, that need to be brought down," Irani said.

Naredco President Rajan Bandelkar said, "The stability in interest rates is a relief for developers who are navigating a complex economic scenario." This decision will benefit everyone, ensuring liquidity in the market and adding to the festive cheer, he added.

Anarock Chairman Anuj Puri said the unchanged repo rate is a festive bonanza for homebuyers.

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

Proptech firm Reloy, which helps builders in generating referral sales, founder and CEO Akhil Saraf said: "The RBI holding rates is great news for the real estate industry. It will help in sustaining housing demand, which has only accelerated despite previous hikes." Dhruv Agarwala, Group CEO, Housing.com, Proptiger.com, said the banks will have more leg room 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," Agarwala said.

Mohit Jain, Managing Director, Krisumi Corporation, said the RBI decision augurs well for the housing sector and demand is expected to remain robust over the next few months.

Ashwin Chadha, CEO, India Sotheby's International Realty, said, "This steady repo rate is anticipated to foster stability in home loan lending rates, which is encouraging ahead of the festive season, where we expect the demand for homes to remain strong." This pause in the repo rate hike has come at an apt time given the ongoing festive season, which will improve market sentiments and drive housing demand even further, said Pritam Chivukula, Co-Founder & Director of Mumbai-based Tridhaatu Realty.

Garvit Tiwari, Director & Co-Founder of housing brokerage firm InfraMantra, said the RBI's move is expected to inspire confidence among prospective homebuyers and the festive season is poised to witness heightened activity in the housing market.