RBI's Repo Rate Hold Ensures Continued Home Sales Growth
ECONOMY & POLICY

RBI's Repo Rate Hold Ensures Continued Home Sales Growth

The Reserve Bank of India's decision to maintain the repo rate at 6.5% for the second consecutive time is anticipated to support the continuous growth of the real estate market. This is particularly beneficial for residential sales in the affordable, low- and mid-income housing sector, which is sensitive to changes in interest rates.

The central bank had previously raised policy rates by a total of 250 basis points through six consecutive increases starting from May of the previous year, ultimately reaching the current repo rate of 6.5%. However, in April, they decided to halt the rate hikes.

As a result of these increases, the real estate sector experienced an increase in costs, affecting more than 260 related industries. Housing loan rates also rose from a record low of 6.6% a year ago to approximately 9% currently. The affordable housing segment, which is particularly influenced by interest rates, had already started to feel the impact of these rate hikes.

Real estate developers expressed their approval of the central bank's accommodative approach, appreciating the decision to pause the repo rate hikes, especially as the record-high inflation gradually subsides.

Also read:
Visakhapatnam District gears up for land pooling
K Raheja’s project sells Rs 1,100 cr properties in 90 days


Redefine the future of urban mobility! Join us at the Metro Rail Conference 2025 to explore groundbreaking ideas and insights. 👉 Register today!

The Reserve Bank of India's decision to maintain the repo rate at 6.5% for the second consecutive time is anticipated to support the continuous growth of the real estate market. This is particularly beneficial for residential sales in the affordable, low- and mid-income housing sector, which is sensitive to changes in interest rates. The central bank had previously raised policy rates by a total of 250 basis points through six consecutive increases starting from May of the previous year, ultimately reaching the current repo rate of 6.5%. However, in April, they decided to halt the rate hikes. As a result of these increases, the real estate sector experienced an increase in costs, affecting more than 260 related industries. Housing loan rates also rose from a record low of 6.6% a year ago to approximately 9% currently. The affordable housing segment, which is particularly influenced by interest rates, had already started to feel the impact of these rate hikes. Real estate developers expressed their approval of the central bank's accommodative approach, appreciating the decision to pause the repo rate hikes, especially as the record-high inflation gradually subsides. Also read: Visakhapatnam District gears up for land pooling K Raheja’s project sells Rs 1,100 cr properties in 90 days

Next Story
Real Estate

Colliers India Transacts 207,000 sq ft office space at Embassy TechVillage

Embassy Office Parks REIT, India’s first listed REIT and the largest office REIT in Asia by area, announced that it has signed an Agreement to Lease (‘ATL’) with global cyber security company Rubrik at Embassy TechVillage in Bengaluru.Colliers, a leading global diversified professional services company, specialising in commercial real estate services, engineering consultancy and investment management facilitated the transaction for Rubrik.Located on Bengaluru’s Outer Ring Road, Embassy TechVillage is one of Embassy REIT’s flagship office parks which offers world-class office spaces, ..

Next Story
Infrastructure Urban

Ensemble Infrastructure India Appoints Suman Saha as Director of Design

Ensemble Infrastructure India Ltd, a leading workplace design and build fit-out company, has appointed Suman Saha as its new Director of Design. With 25 years of experience in the industry, Suman is recognized for his innovative approach and excellence in design leadership.Working closely with the CEO, Suman’s appointment will enhance the company’s design communication across multiple touchpoints, ensuring smooth collaboration between clients, designers, and execution teams for superior project outcomes. Under his guidance, Ensemble will focus on creating workspaces and design labs that em..

Next Story
Products

Ribbon Vanity by Küche7: Fluid Design Meets Everyday Elegance

Küche7, pioneers in luxury stainless steel kitchens, have unveiled the Ribbon Vanity, a graceful creation that transforms bathroom spaces with its soft, flowing design and understated sophistication. Inspired by the fluid form of a ribbon, this vanity combines smooth finishes, clean lines, and gentle curves, offering a timeless aesthetic that seamlessly complements diverse interior styles.Available in a refined blush pink hue, the Ribbon Vanity effortlessly merges functionality with elegance. With thoughtfully designed storage options, it ensures that bathroom essentials are neatly organised ..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000