Monetary Policy Committee plans repo rates hike by 4.40%

06 May 2022 CW Team

The Monetary Policy Committee has decided to increase the repurchasing option (repo) rate by 40 basis points.

The real estate developers told the media that they believe in the repo rate hike to 4.40%. It will effectively end the low home loan interest rates that the homebuyers have been enjoying for the past 18 months.

Chairman of Anarock Property Consultants, Anuj Puri, said that the price hike would end all-time low home loan interest rates, which have been driving demand for housing sales during the Covid-19 pandemic.

He added that the rising interest rates and inflationary trends in basic construction materials like steel, cement, labour cost, etc., will increase the burden on the residential sector.

The Indian real estate sector is reviving post-pandemic, with many prospective buyers advancing plans to transform homeowners.

According to Knight Frank India, between July-December 2021, 1,33,487 houses were sold, up by 41% year-on-year (YoY) growth. Overall, 2,32,903 houses were sold in 2021, up by 51% YoY.

Anarock surveyed that a hike in the product price will significantly impact the residential sector.

Chairman and Managing Director of Sterling Developers Ramani Sastri said that the price hike would affect residential demand, which has been revived post-pandemic.

Chief Economist and Research Head of India at Jones Lang LaSalle (JLL), Samantak Das, highlighted the negative impact of repo price hike as it projected an imminent hike in home loans.

He added that the company estimated a robust comeback in five years in residential sales due to affordable housing. But the repo price hike, along with increased cost inflation, might slow down the growth in the residential sector.

Chairman of the National Real Estate Development Council (NAREDCO), Niranjan Hiranandani, said that the residential sector could be saved if the level of insulation sets between the repo rate hike and a real hike in home loan interest rates.

He added that the regulator should ensure that inflationary pressure on homebuyers does not collide with the home loans hike, especially if the inflation rates have been beyond the Reserve Bank of India's (RBI) upper band of tolerance of 6%.

Image Source

Also read: RBI Governor: Interest rates to be cut by 75 bp

The Monetary Policy Committee has decided to increase the repurchasing option (repo) rate by 40 basis points. The real estate developers told the media that they believe in the repo rate hike to 4.40%. It will effectively end the low home loan interest rates that the homebuyers have been enjoying for the past 18 months. Chairman of Anarock Property Consultants, Anuj Puri, said that the price hike would end all-time low home loan interest rates, which have been driving demand for housing sales during the Covid-19 pandemic. He added that the rising interest rates and inflationary trends in basic construction materials like steel, cement, labour cost, etc., will increase the burden on the residential sector. The Indian real estate sector is reviving post-pandemic, with many prospective buyers advancing plans to transform homeowners. According to Knight Frank India, between July-December 2021, 1,33,487 houses were sold, up by 41% year-on-year (YoY) growth. Overall, 2,32,903 houses were sold in 2021, up by 51% YoY. Anarock surveyed that a hike in the product price will significantly impact the residential sector. Chairman and Managing Director of Sterling Developers Ramani Sastri said that the price hike would affect residential demand, which has been revived post-pandemic. Chief Economist and Research Head of India at Jones Lang LaSalle (JLL), Samantak Das, highlighted the negative impact of repo price hike as it projected an imminent hike in home loans. He added that the company estimated a robust comeback in five years in residential sales due to affordable housing. But the repo price hike, along with increased cost inflation, might slow down the growth in the residential sector. Chairman of the National Real Estate Development Council (NAREDCO), Niranjan Hiranandani, said that the residential sector could be saved if the level of insulation sets between the repo rate hike and a real hike in home loan interest rates. He added that the regulator should ensure that inflationary pressure on homebuyers does not collide with the home loans hike, especially if the inflation rates have been beyond the Reserve Bank of India's (RBI) upper band of tolerance of 6%. Image Source Also read: RBI Governor: Interest rates to be cut by 75 bp

Real Estate

07 Aug 2026

BXB Estates Sets AED 110 Million Jumeirah Golf Estates Record

BXB Estates has completed an AED 110 million residential transaction at Jumeirah Golf Estates, setting a new sales record for the prestigious Dubai residential community.Negotiated by Alfie Tabrez, Managing Partner of BXB Estates, the deal surpassed the previous record of AED 58 million for a completed ready villa in the development.The six-bedroom residence offers 21,714 sq ft of built-up space on a 15,873-sq-ft plot. It features nine bathrooms, four living lounges, a home office, bar lounge, private cinema and rooftop terrace.The property also includes a dedicated wellness area comprising a ..

Infrastructure Urban

07 Aug 2026

SECR Floats Rs 6,019 Mn EPC Tender For Paradol Nagpur Link

South East Central Railway (SECR) has invited bids for an Engineering, Procurement and Construction (EPC) contract to build a new broad gauge single line between Paradol Takeoff Point and Nagpur Road Station in Chhattisgarh. The contract carries an estimated cost of Rs 6,019.0 mn and requires an earnest money deposit of Rs 120.4 mn. The work is framed as an EPC assignment intended to strengthen regional rail infrastructure. The tender, issued under number CAO-C-BSP-26-27-15, specifies a completion period of 730 days and a bid validity of 180 days. Two pre-bid meetings are scheduled for 24 Augu..

Infrastructure Transport

07 Aug 2026

Indian Railways Reports Nine Per Cent Rise In July Freight Loading

Indian Railways handled 141.3 million tonnes (141.3 mn t) of freight in July, marking a rise of nine per cent year on year. Freight loading maintained a positive trajectory across the network compared with the same month last year. Passenger traffic also increased in July, contributing to higher overall network utilisation. The July outcome continued a pattern of steady monthly gains, reflecting gradual improvement in industrial and logistics activity. The growth in freight volumes reflected stronger demand across multiple sectors and improvements in logistics and train turnarounds. Enhanced r..