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RBI's 'pause' to provide temporary relief to realty sector; support festive season demand

Real estate experts also cautioned that while the central bank’s decision to keep the repo rates unchanged could prove to be favourable for the real estate sector in the short-term, it could be a worrisome development from a macro-economic long term prospective.

Expressing surprise at the Reserve Bank of India’s (RBI) decision to retain the key policy repo rate at 6.50 percent,  real estate developers and experts said the 'pause' will provide a temporary relief to homebuyers' sentiment and support the festive season demand.

Real estate experts also cautioned that while the central bank’s decision to keep the repo rates unchanged could prove to be favourable for the real estate sector in the short-term, it could be a worrisome development from a macro-economic long term prospective. They also wondered whether banks that had hiked interest rates a day before the RBI announcement, would now reverse the hike.

RBI's move expected to  boost festive demand

JLL India CEO & Country Head Ramesh Nair welcomed the move and said  it would give the much-needed impetus to the housing market which has been showing signs of revival in the last six months. "For homebuyers, the timing could not have been better as lending rates are not expected to increase from current levels. Besides providing a major fillip to buyer sentiment, RBI's move should also translate into boosting demand," Nair said.