New Delhi: Real estate industry bodies CREDAI and NAREDCO on Friday hailed the RBI's decision to keep repo rate unchanged despite inflationary concern, saying a stable interest rate regime would help sustain housing demand.
On Friday, The Reserve Bank of India (RBI) kept its benchmark repo rate unchanged at 5.25 per cent, and announced a raft of measures to attract foreign capital and support the rupee.
CREDAI President Shekhar G Patel said the RBI policy indicates a calibrated response amidst the current global economic environment, while NAREDCO President Parveen Jain described it as a positive development for both the economy and the real estate sector.
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"With geopolitical tensions, inflationary concerns, and currency volatility continuing to influence markets globally, policy continuity will bode well for the real estate sector and help sustain overall market stability," Patel said.
CREDAI, the apex industry body for real estate developers, has more than 15,000 members.
"With borrowing costs remaining steady, housing demand, particularly across mid-income and premium segments, is expected to remain resilient. At the same time, the policy reflects a balanced approach towards supporting growth while remaining watchful of inflationary risks," Patel said.
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Given the neutral stance, he said the announcement is expected to further strengthen investor, end-user, and homebuyer confidence.
Jain of NAREDCO said this move will help maintain market stability and reinforce consumer confidence, at a time when global uncertainties continue to pose challenges.
"With borrowing costs remaining steady, homebuyers will not face any additional burden on home loan repayments, which should support housing demand, particularly in the mid-income and affordable housing segments," he added.
The NAREDCO President noted that the decision also provides greater predictability for developers, enabling better financial planning and smoother execution of projects.
