CREDAI, NAREDCO hail RBI policy, stable home loan interest rate to help sustain housing demand

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 (RBI) 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 RBI marginally raised the GDP forecast for the current fiscal to 6.7 per cent while slightly lowering the inflation projection to 5 per cent.


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 the prevailing global uncertainties, maintaining the 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 RBI's 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.

The decision to keep the repo rate unchanged will also have a positive impact on festive season sales of under-construction properties, Jain said.

Among developers, Priyamvada Navet, Deputy CEO of Experion Developers, said, "For the real estate sector, this is a positive signal. Stable borrowing costs, stronger growth expectations and resilient consumer confidence provide a supportive backdrop for homebuyers and long-term investment. More importantly, policy predictability gives developers the confidence to plan, invest and execute projects with greater certainty."

Pradeep Aggarwal, Chairman of Signature Global, noted that the residential real estate sector has witnessed healthy demand in recent quarters, supported by stable borrowing costs and improving consumer sentiment.

"Continuing with the current rate environment will help sustain housing demand, encourage homeownership, and enable developers to maintain project execution and new launches without disruption," he added.