Shishir Baijal, International Partner, Chairman and Managing Director, Knight Frank India.
“The RBI’s decision to hold rates steady, reflects a cautious and stability focused stance in a volatile global environment. As the economic growth outlook remains stable and maintain momentum, we can expect this overall growth to have a positive impact on the real estate sector. The pause underscores the central bank’s priority on managing currency pressures and external risks.
For the real estate sector, the repo rate continues to remain at its lowest level in the post-pandemic period. While a further reduction in rates would have provided an added boost to homebuyer sentiment, particularly in the affordable housing segment, we expect banks to pass on a greater share of the existing rate benefits to consumers in the coming months. A stable interest rate environment offers much-needed predictability, supporting informed decision-making for both homebuyers and developers. In addition to the rate actions, the central bank has also eased the rules for bank lending to REITs which is a positive step considering it will ease their credit access and facilitate access to lower cost funds.”