Stable home loan interest rate to help sustain hsg demand

PTI New Delhi

Realtors' apex bodies CREDAI and NAREDCO on Wednesday hailed the Reserve Bank of India's decision to keep the repo rate unchanged, saying a stable home loan interest rate regime would help sustain housing demand.

The Reserve Bank of India kept its benchmark policy rate unchanged for the fourth consecutive meeting on Wednesday, opting to wait for greater clarity on whether higher energy costs triggered by the Iran war feed into broader inflationary pressures. 

The central bank marginally raised the gross domestic product forecast for the current fiscal to 6.7% while slightly lowering the inflation projection to 5%. 

Commenting on the monetary policy, CREDAI President Shekhar Patel said, "The RBI's decision provides much-needed stability and reassurance for the real estate sector." Given prevailing global uncertainties, maintaining status quo sends a positive signal of confidence and policy continuity, he added. 

"Real estate is a long-gestation sector, and homebuyers make long-term financial commitments. A stable interest-rate environment enables both developers and buyers to plan with greater certainty," Patel said. 

NAREDCO President Parveen Jain also hailed the decision. 

"At this juncture, when the worldwide situation is highly volatile, we appreciate this decision of the RBI and hope that this will give positive vibes to the realty sector. Stability in interest rates will have a positive impact on home buyers as well as developers and will maintain the momentum in demand for housing," he said.