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

Infrastructure Urban

17 Sep 2025

DCPC Prepares for Special Campaign 5.0 with Focus on E-Waste

The Department of Chemicals and Petrochemicals (DCPC), Ministry of Chemicals and Fertilisers, is gearing up for Special Campaign 5.0, to be held from 2nd to 31st October 2025. The initiative will focus on e-waste disposal as per MoEFCC’s E-Waste Management Rules 2022, space optimisation, and enhancing workplace efficiency across field offices.Special Campaign 4.0, conducted between October 2023 and October 2024, delivered notable results in record management, grievance redressal, scrap disposal, and cleanliness drives.Key outcomes of Special Campaign 4.0Records management: 2,443 physical fil..

Real Estate

17 Sep 2025

BlackRock India Leases 1.4 Lakh Sq Ft in Bengaluru

BlackRock Services India, the domestic arm of global asset manager BlackRock, has leased 1.4 lakh sq ft of office space at IndiQube Symphony in Bengaluru, according to Propstack data. The 10-year deal is valued at around Rs 4.10 billion.The lease, among the largest transactions in India’s co-working sector, highlights the growing preference of global institutions for flexible office providers. The agreement, commencing October 1, 2025, covers ground plus five floors in KNG Tower 1 at Ashoknagar, MG Road — one of Bengaluru’s prime commercial hubs.As per the lease document, BlackRock will ..

Infrastructure Transport

17 Sep 2025

L&T Bags Rs 25–50 Bn Order for Mumbai-Ahmedabad Bullet Train Track Works

Larsen & Toubro’s (L&T) Transportation Infrastructure business has secured an order valued between Rs 25 crore and Rs 50 billion from the National High Speed Rail Corporation Limited (NHSRCL) for the Mumbai-Ahmedabad High Speed Rail (MAHSR) corridor.The contract, Package T1, involves the design, supply, construction, testing, and commissioning of 156 route km of high-speed ballastless track on a Design-Build Lump Sum Price basis. The stretch runs from Mumbai’s Bandra-Kurla Complex to Zaroli village in Gujarat and includes 21 km of underground track and 135 km of elevated viaduct.Se..