RBI maintains status quo, keeps key policy rate unchanged
RBI maintains status quo, keeps key policy rate unchanged


Reserve Bank of India (RBI) announced on August 10, its Monetary Policy Committee meeting has decided to keep the key policy repo rate unchanged at 6.5 percent. The announcement could have a positive impact on consumer sentiment, benefiting the interest-sensitive Real Estate sectorIndia Inc. leaders shared their views with Team Estrade, as follows;

Boman Irani, President, CREDAI National

Boman Irani, President, CREDAI National

“RBI’s stance of maintaining the repo rate at 6.5% is a cautious step towards further controlling inflation in the long run. With the economy on track & driven by sustained demand across sectors, we at CREDAI reiterate our view that it will be beneficial for consumer sentiment if a repo rate cut is announced in the next MPC review. This will increase consumer spending in the festive season & fuel demand across sectors, boosting our Indian growth story.”


Sandeep Runwal – President, NAREDCO Maharashtra and Managing Director, Runwal Group | Runwalgroup.in

Sandeep Runwal, President, NAREDCO Maharashtra
“The decision by the RBI to maintain the repo rates at 6.50 percent is a favorable step, though a decrease in these rates would have positively impacted the optimism of potential homebuyers resulting in stimulated home sales. An adjustment like that would have injected more funds into the pockets of prospective homebuyers, motivating them to make their dream home purchase. Nevertheless, the RBI has effectively managed to keep inflation rates within acceptable boundaries. The Indian economy has displayed resilience against global uncertainties and has exhibited commendable performance. Also, the government has implemented a range of constructive policy measures that have sustained housing sales momentum. Additionally, the government’s resolution to keep the Ready Reckoner (RR) rates steady for the state in 2023-24, has indeed elevated the confidence of homebuyers. We once again make an appeal to the government to consider reducing stamp duty rates, a move that could invigorate the interest of potential homebuyers. It is our hope that these positive advancements will uphold the enthusiasm of homebuyers, encouraging them to step forward and realize their homeownership aspirations.”


Pritam Chivukula, Co-Founder & Director, Tridhaatu Realty, Treasurer, CREDAI MCHI

Pritam Chivukula – Vice President, CREDAI-MCHI and Co-Founder & Director, Tridhaatu Realty

“The RBI’s decision to keep the repo rate unchanged at 6.50 per cent, once again reiterates the government’s resolve in supporting the real estate industry with sustaining government policies. This pause in the repo rate will help in improving market sentiments which is essential, given the upcoming festive season. This will drive housing demand, while controlling inflationary trends. We expect the government to continue with industry friendly policies that will sustain housing sales. We also look forward to the state government reducing stamp duty which will further bring relief to home buyers and boost home sales.”


Anuj Puri, Chairman – ANAROCK Property Consultants Pvt. Ltd.

Anuj Puri – Chairman, Anarock Group

As widely anticipated, the RBI has decided to keep the repo rates unchanged at 6.5%. India continues to outperform other countries in terms of consumption and with the festive season coming up, the RBI will not risk denting it.

This is nothing but good news for aspiring homebuyers on the market for a purchase in the near future. The unchanged repo rate will help maintain the momentum in housing sales – particularly in the mid and luxury segments, which did significantly well in H1 2023.

As per ANAROCK Research, we saw total housing sales of approx. 2.29 lakh units across the top 7 cities in H1 2023, the highest half yearly sales in the last decade.

However, the risk of inflation continues to lurk and if it rises further, there could be some repercussions on overall sales, especially in the cost-sensitive affordable housing segment which has already been severely impacted by the pandemic over the last couple of years.

Amidst the rising cost of these properties and the cumulative 250 bps rate hikes by the RBI in the last one year and more, affordable housing buyers have taken the severest blow. As per ANAROCK Research, homebuyers’ EMIs jumped up by 20% in the last two years. Home loan borrowers who were paying an EMI of approx. INR 22,700 in July 2021 are now paying approx. INR 27,300 – an increase of approx. INR 4,600 per month.

This 20% increase in the EMI has resulted in a jump of approx. INR 11 lakh in the overall interest component – from approx. INR 24.5 lakh interest payable in 2021 to approx. INR 35.5 lakh today. The total interest payable over a 20-year tenure is now more than the principal amount.


Vivek Mohanani – MD & CEO, Ekta World

Vivek Mohanani – MD & CEO, Ekta World
“The Indian economy has demonstrated remarkable strength and resilience in the face of global challenges. The RBI’s choice to uphold the current stance for the third consecutive occasion was a predictable decision aimed at prioritizing stability. Opting for another increase in the repo rate by the RBI would not have been favorable for the real estate sector, given that home loan interest rates are already increased. Any additional escalation in policy rates could have significantly impacted the sentiments of potential buyers and their ability to afford homes. This, in turn, might have restrained the demand as well. It would be more preferable to see a further reduction in interest rates in the near future to enhance overall market confidence and create a more appealing environment for prospective home buyers.”

Prashant Khandelwal, CEO – Agami Realty

Prashant Khandelwal, CEO – Agami Realty
“We welcome the RBIs decision to keep the repo rate unchanged as it will provide a major boost to the housing sector. By maintaining a status quo we can expect more home buyers to come forward and buy their desired home. We look forward to continued support from the government in terms of industry friendly policies that will help sustain growth of the sector.”

Rohan Khatau, Director, CCI Projects

Rohan Khatau, Director, CCI Projects

“The RBIs decision to keep the repo rate unchanged is a good move as it will curb inflation and drive housing demand. This comes at a time when market sentiments are robust coupled with high expectations given the approaching festive season.  We hope the government considers bringing down stamp duty rates which will have a positive impact on home buyer sentiments and bring much needed relief to the home buyer.”

Himanshu Jain, VP – Sales, Marketing and CRM, Satellite Developers Pvt. Ltd.

Himanshu Jain, VP – Sales, Marketing and CRM, Satellite Developers Pvt. Ltd. (SDPL)
“Considering the existing market circumstances and inflationary pressures, the move by the RBI was anticipated to steer the economy in the right direction and maintain a stable financial environment. Escalating property costs had already compounded the challenges for those looking to purchase homes. However, the RBI’s choice to abstain from another repo rate hike has provided a big respite to prospective homebuyers. Furthermore, individuals aiming to purchase their first home often consider it as a significant investment, and this move by the RBI is expected to positively influence their decision-making process.”

Dr. Sachin Chopda, Managing Director, Pushpam Group

Dr. Sachin Chopda – Managing Director, Pushpam Group

“We welcome the RBI’s decision of keeping the key rates unchanged amid the rising inflation. This would encourage the prospective homebuyers to still close-in on their property investments. In the last couple of years, we have witnessed a lot of investment in real estate as it has provided the investors with more value for their money and it has also become an attractive asset class when compared to other investment options.”


Ramani Sastri – Chairman & MD, Sterling Developers Pvt. Ltd

Ramani Sastri, Chairman and MD, Sterling Developers

“The RBI’s decision to maintain status quo in the repo rates augurs well for the real estate sector. It is important to note that the macro-economic fundamentals of the country are strong and the economy is performing well. The real estate market has seen a strong rebound in in the recent past driven primarily by end-users and we see this up-cycle continuing in 2023. Also, the strong fundamentals for housing demand will keep the momentum upwards for realty sales where buyers are carefully filtering out projects and looking for the right product mix in terms of affordability, accessibility and quality of living. The continuation of existing policy rates and undoubtedly, a further reduction in interest rates in the near future would be preferred to bolster overall market confidence and make it more enticing for home buyers. Moreover, as the festive season approaches, it presents a golden opportunity to reinvigorate the real estate market with reduced interest rates ahead of the festive season. It also has to be kept in view that real estate is considered as the safest bet for investment compared to other instruments. All of this will boost real estate and enhance economic growth in the larger context. Overall, we are optimistic that the government would shape its policy actions to promote demand even further and incentivise people to buy more properties, as the sector is the primary contributor to economic growth.”


Lincoln Bennet Rodrigues,Chairman & Founder, The Bennet and Bernard Company

Lincoln Bennet Rodrigues, Chairman & Founder, The Bennet and Bernard Company, known for luxury themed homes in Goa

“We welcome RBI’s decision to maintain status quo as it helps in holding the interest rates and sustaining the growth momentum in the real estate sector. In the residential segment, buyer sentiment has continued to be robust and this has resulted in home sales showing an appreciable rate of growth. Post-pandemic, the luxury housing market has acquired a strong foothold, thanks to the rising disposable incomes accompanied by a desire for better living, subsequently driving up prices in this segment. As buyers seek a signature style of living, this trend is expected to continue in the near future, given change in lifestyles, rapid urbanization and needs. The heightened demand for luxury properties has been further bolstered by the rise in investments from non-resident Indians (NRIs). However, a further reduction in the key rates would be widely celebrated as low interest rates have been a crucial factor in the revival of overall real estate demand and improvement in the liquidity situation which is vital for the sector”


Samyak Jain, Siddha Group

Samyak Jain – Director, Siddha Group
“The RBI’s choice to keep its key policy rates unchanged for the third consecutive occasion was anticipated. This decision arrives amidst escalating property prices, which is already adding a huge financial burden to the end consumer. Although the decision might not have an immediate impact on the prospective homeowners, but it does offer some stability to the real estate sector. Consequently, it could potentially motivate several homebuyers who were actively in pursuit of their dream home. We eagerly anticipate governmental involvement, possibly through the reduction of stamp duty rates, which would offer relief to homebuyers and alleviate their financial strain even more.”

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