Credai, NAREDCO seek lower repo rate to boost housing demand
Real Estate

Credai, NAREDCO seek lower repo rate to boost housing demand

Realtors' apex bodies CREDAI and NAREDCO have requested a reduction in the repo rate in the next monetary policy meeting to lower home loan interest rates and enhance demand for residential properties. The Reserve Bank of India (RBI) decided to maintain the current repo rate. Boman Irani, National President, CREDAI, highlighted the country's significant economic growth, driven by contributions from all sectors, including real estate. He pointed to the low CPI at 4.83% in April and other positive macroeconomic indicators as reasons for the RBI to consider a repo rate cut, which could further boost economic development and consumer spending.

G Hari Babu, National President, NAREDCO praised the RBI's decision to maintain the repo rate but emphasised the urgent need for intervention in the affordable housing sector. He suggested that a repo rate reduction in the next MPC meeting would positively impact this segment. Babu noted the real estate sector's strong performance and expressed the industry's and homebuyers' anticipation of further government and RBI support.

Sanjay Dutt, MD & CEO, TATA Realty & Infrastructure, supported the decision to keep the repo rate unchanged given the global economic context. He expects lower interest rates later this year, which could significantly increase housing demand by making home loans more affordable.

Samir Jasuja, CEO & MD, PropEquity, indicated that a policy rate cut might be imminent, given that overall inflation is within the RBI's target range. He stressed that a rate cut would enhance customers' purchasing power, which is crucial given the substantial increase in real estate prices.

Shrinivas Rao, CEO, Vestian, predicted that this might be the last time the RBI maintains the status quo, anticipating a repo rate reduction in the upcoming MPC meeting due to higher kharif production and expected easing of food prices.

Dhruv Agarwala, Group CEO, Housing.com & PropTiger.com, stated that the RBI's cautious approach reflects an acknowledgment of persistent food inflation and strong growth. He noted that while the current decision ensures short-term stability in interest rates for homebuyers, a future repo rate cut is vital for sustained sectoral growth amid rising property prices.

Shishir Baijal, Chairman & Managing Director, Knight Frank India, suggested that an above-normal monsoon could help control food prices, potentially leading the RBI to lower interest rates by the end of 2024, which would particularly benefit the affordable housing segment.

Gauri Tandle, CFO, Ashwin Sheth Group, remarked that the RBI's decision supports both individual homebuyers' aspirations and the broader goals of economic growth and stability. (Source: Business Standard )

Realtors' apex bodies CREDAI and NAREDCO have requested a reduction in the repo rate in the next monetary policy meeting to lower home loan interest rates and enhance demand for residential properties. The Reserve Bank of India (RBI) decided to maintain the current repo rate. Boman Irani, National President, CREDAI, highlighted the country's significant economic growth, driven by contributions from all sectors, including real estate. He pointed to the low CPI at 4.83% in April and other positive macroeconomic indicators as reasons for the RBI to consider a repo rate cut, which could further boost economic development and consumer spending. G Hari Babu, National President, NAREDCO praised the RBI's decision to maintain the repo rate but emphasised the urgent need for intervention in the affordable housing sector. He suggested that a repo rate reduction in the next MPC meeting would positively impact this segment. Babu noted the real estate sector's strong performance and expressed the industry's and homebuyers' anticipation of further government and RBI support. Sanjay Dutt, MD & CEO, TATA Realty & Infrastructure, supported the decision to keep the repo rate unchanged given the global economic context. He expects lower interest rates later this year, which could significantly increase housing demand by making home loans more affordable. Samir Jasuja, CEO & MD, PropEquity, indicated that a policy rate cut might be imminent, given that overall inflation is within the RBI's target range. He stressed that a rate cut would enhance customers' purchasing power, which is crucial given the substantial increase in real estate prices. Shrinivas Rao, CEO, Vestian, predicted that this might be the last time the RBI maintains the status quo, anticipating a repo rate reduction in the upcoming MPC meeting due to higher kharif production and expected easing of food prices. Dhruv Agarwala, Group CEO, Housing.com & PropTiger.com, stated that the RBI's cautious approach reflects an acknowledgment of persistent food inflation and strong growth. He noted that while the current decision ensures short-term stability in interest rates for homebuyers, a future repo rate cut is vital for sustained sectoral growth amid rising property prices. Shishir Baijal, Chairman & Managing Director, Knight Frank India, suggested that an above-normal monsoon could help control food prices, potentially leading the RBI to lower interest rates by the end of 2024, which would particularly benefit the affordable housing segment. Gauri Tandle, CFO, Ashwin Sheth Group, remarked that the RBI's decision supports both individual homebuyers' aspirations and the broader goals of economic growth and stability. (Source: Business Standard )

Next Story
Infrastructure Urban

President Murmu Boosts Gorakhpur University Projects

President Droupadi Murmu today inaugurated key facilities at Mahayogi Gorakhnath University in Gorakhpur, Uttar Pradesh, including a new auditorium, an academic block and a Panchkarma Kendra, and laid the foundation stone for an additional girls’ hostel. Commending the institution’s dual focus on allopathy and Ayurveda, she welcomed plans for an 1 800 bed Shri Gorakshanath Medical College Hospital and Research Centre.Praising private, philanthropic institutions under the National Education Policy 2020, the President noted that Mahayogi Gorakhnath is the first private univ..

Next Story
Infrastructure Transport

Cabinet OKs Rs 18.5 Bn Four Lane NH 87 in Tamil Nadu

The Union Cabinet has cleared a Rs 18.53 billion plan to upgrade 46.7 kilometres of National Highway 87 between Paramakudi and Ramanathapuram to four lanes. At present, this section is a two lane bottleneck that links Madurai, Rameshwaram and Dhanushkodi, and regularly suffers jams and accidents.Scheduled to be built under the Hybrid Annuity Mode, the new highway will intersect five other national highways (NH 38, 85, 36, 536 and 32) and three state highways (SH 47, 29 and 34). It will also strengthen multi modal links to Madurai and Rameshwaram railway stations, Madurai Airport, a..

Next Story
Infrastructure Transport

Pune Metro to Add 15 Trains, Cut Wait Time to 3 Minutes

In a bid to enhance commuter convenience and prepare for two newly approved corridors, Pune Metro has announced plans to add 15 new trains — totalling 45 coaches — to its existing fleet. This will increase the total number of trains from 34 to 49 and coaches from 102 to 147.Currently, Pune Metro serves over 1.7 lakh passengers daily using 34 trains, of which 31 are operational. The new trains, each consisting of three coaches, will be deployed once construction on the new Swargate–Katraj and PCMC–Nigdi lines is complete. These projects were approved in August 2024 and October 2023 resp..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?