RBI’s status quo on rates to keep RE momentum on course

Mumbai: The decision to maintain status quo will keep the ongoing residential real estate sales momentum on course, offering homebuyers assurance of steady loan terms. The Indian real estate sector has demonstrated exceptional resilience and momentum, driven by robust demand, rising aspirations, and supportive government-led initiatives, positioning it as one of the most dynamic and fastest-growing markets globally. As India's economy continues to grow, there is an increasing interest among the homebuyers to continue to invest in residential real estate for long-term returns.

Ramani Sastri - Chairman & MD, Sterling Developers, says, “We are hopeful that the real estate sector’s growth momentum will continue to accelerate further and drive long term momentum for home ownership and contributing positively to overall economic expansion.”

A supportive interest-rate environment plays a crucial role in sustaining homebuyer confidence and hence, we would definitely welcome further rate cuts in the near term, thereby boosting affordability and further investments in the sector.

Manas Mehrotra, Founder, 315Work Avenue, a leading coworking player says, “RBI’s decision to maintain status quo on policy rates provides much-needed stability and clarity for the real estate sector.”

For commercial real estate, steady interest rates and borrowing costs support sustained leasing momentum and long-term investment decisions, thereby increasing demand for office space and support new developments. Easier credit availability attracts both individual and institutional investors, driving new investments into commercial real estate. However, a rate cut is expected soon to have a pronounced impact on the real estate sector easing borrowing costs and improving credit availability, leading to consumer demand to pick up significantly.