In the first quarter of 2024, more than 1.30 lakh residential properties were sold across the top seven Indian cities, as reported by ANAROCK Research, marking the highest sales figures recorded in the last decade.
The Reserve Bank of India (RBI) has opted to sustain the repo rate at 6.5 percent, a decision that is expected to bolster housing demand by keeping home loan interest rates steady for the time being, as affirmed by experts and developers in the real estate sector.
During its latest meeting on April 5, the RBI’s Monetary Policy Committee (MPC) resolved to hold the repo rate at its present level for the seventh consecutive session.
Real estate professionals assert that this decision will help maintain the ongoing housing boom, assisting potential homeowners in confidently moving forward with their plans.
Anuj Puri, Chairman of ANAROCK Group, anticipated that the RBI would keep the repo rate steady at 6.5 percent, stating, "The choice to preserve the status quo will ensure that the current momentum in residential real estate continues unhindered. Prospective homeowners planning a purchase will move forward with assurance. Despite steadily rising prices, the top 7 cities have seen phenomenal housing sales in recent quarters. Home loan borrowers will benefit from the appropriate and much-needed respite that the RBI’s stable repo rate will offer."
According to ANAROCK Research, the total home sales across these seven cities surpassed 1.30 lakh units in Q1 2024, representing the highest quarterly sales in the last ten years. Major markets including Mumbai, Delhi NCR, Bangalore, Chennai, Hyderabad, Kolkata, and Pune contributed to these figures. Notably, in the last year alone, average residential prices in these cities have increased significantly, with changes between Q1 2023 and Q1 2024 ranging from 10 to 32 percent.
Manju Yagnik, senior vice president of NAREDCO Maharashtra, remarked that the RBI’s decision to maintain the repo rate at 6.5 percent creates favorable conditions for homebuyers, allowing individuals considering a purchase to benefit from low home loan interest rates.
“The housing market is expanding rapidly, and to control the market and boost consumer confidence overall, stable home loan rates are crucial. In light of growing costs, homeowners will greatly benefit from and receive much-needed relief from the RBI’s decision. This decision lays the foundation for the housing sector’s long-term stability and expansion and boosts the optimistic attitude currently permeating the market,” Yagnik, vice chairperson of Nahar Group, asserted.
Facilitating Greater Home Buying Access
Supporting this sentiment, Pradeep Aggarwal, the founder and chairman of the publicly traded real estate firm Signature Global (India) Limited, noted, “A stable repo rate gives the average homebuyer credibility and assurance that they can be assured while taking home loans.” This stability has a direct bearing on the growth of the real estate market, which, in turn, significantly boosts India’s GDP and future growth potential.
“Emphasizing the importance of managing price stability amid inflationary pressures is evident in the RBI’s unwavering stance. Future homeowners will certainly benefit from decreased borrowing costs, enabling greater accessibility to homeownership,” Anshuman Magazine, Chairman and CEO of CBRE’s operations in India, Southeast Asia, the Middle East, and Africa, commented.