The Reserve Bank of India (RBI) has decided to keep the policy repo rate at 6.5%. This marks the ninth consecutive time the rate has remained unchanged. The decision was made by the Monetary Policy Committee (MPC) with a vote of 4 to 2. This cautious approach is intended to maintain economic stability amid ongoing global uncertainties. The decision is expected to have a notable impact on the real estate sector, particularly regarding borrowing costs and investment sentiments.

Experts in the real estate industry have welcomed this decision. Mr. Prashant Sharma, President of NAREDCO Maharashtra, stated, "We welcome the RBI's decision to keep the policy repo rate unchanged at 6.5%. This decision reflects a cautious yet stable approach to monetary policy amidst global economic uncertainties. For the real estate sector, the steady interest rates are a positive signal, providing a conducive environment for homebuyers and investors alike." Sharma emphasised the importance of maintaining this stability to foster consumer confidence and stimulate demand in the housing market, especially in the affordable and mid-segment categories.

Mr. Pritam Chivukula, Vice President of CREDAI-MCHI and Co-Founder & Director of Tridhaatu Realty, also expressed support for the RBI's decision. He noted, "The real estate sector, particularly in metro cities like Mumbai, has been experiencing a steady revival, and the current rate stability will help sustain this momentum." Chivukula added that favourable lending rates will encourage more investments in the housing market. However, he urged the government to consider additional measures to enhance liquidity and provide long-term stability to the sector.

Mr. Rajeev Ranjan, Co-Founder & CEO of The Mentors Real Estate Advisory Pvt Ltd, highlighted the importance of stability in interest rates for buyer confidence. He said, "The decision by the Monetary Policy Committee to keep the policy repo rate unchanged at 6.5% is a balanced approach that reflects the current economic landscape." Ranjan believes that the unchanged repo rate will continue to provide a favourable borrowing environment while allowing the RBI to monitor inflation without hindering growth. He anticipates that this stance will help sustain momentum in the real estate market.

Other industry leaders echoed similar sentiments. Ms. Shraddha Kedia-Agarwal, Director of Transcon Developers, commended the RBI's decision, stating, "The stability in interest rates is a positive sign for both developers and homebuyers." She believes this will encourage potential buyers to invest in their dream homes with confidence.

Mr. Rohan Khatau, Director of CCI Projects emphasised, "RBI's decision to maintain the policy rate is a prudent step, as we are able to control inflationary trends. The focus on controlling inflation to support growth is commendable as it will foster a favourable environment for the real estate sector, enabling growth and stability. We are optimistic that these measures will enhance consumer confidence and encourage home ownership, laying a strong foundation for future progress."

Mr. Samyak Jain, Director of Siddha Group expressed, "We welcome the RBI's decision to maintain the policy repo rate at 6.5%, which reflects a positive approach toward sustaining economic growth while keeping inflationary pressures in check. The real estate sector has witnessed a steady demand, and this move by the RBI provides continued stability, allowing homebuyers to benefit from favourable interest rates. As we move forward, we hope this stability will encourage more consumers to invest in real estate, further driving growth in the sector."

Lastly, Mr. Himanshu Jain, VP of Sales, Marketing, and CRM at Satellite Developers Private Limited, stated, "The focus on controlling inflation to stimulate growth will undoubtedly spur housing demand, benefiting homebuyers and developers alike."

In summary, the RBI's decision to keep the repo rate at 6.5% is seen as a critical step in supporting the real estate sector. Industry experts believe that this stability will foster consumer confidence, encourage homeownership, and drive growth in real estate and related industries. As the market continues to adjust to these conditions, stakeholders remain optimistic about the future of the housing market.