The home buying momentum persists vigorously, even in the face of an anticipated rate hike by the Reserve Bank of India (RBI), which has led to a consistent increase in property prices. The real estate sector, consequently, appears to have liberated itself from previous anxieties, seemingly shaking off any concerns. Economists remain vigilant, especially with high food prices indicating the likelihood of a fifth round of policy rate hikes coming towards the close of this month. It is thought that the RBI will conduct its inaugural mid-quarter policy review on September 16.
In spite of the looming possibility of an interest rate increase by the RBI in the coming week, developers maintain a calm demeanor and express confidence regarding residential sales. Mr. Kumar Gera, chairman of the Confederation of Real Estate Developers' Associations of India (CREDAI), remarked that buyers are motivated by the fear of future price increases, which drives them to invest now. According to him, contemporary investors typically overlook price considerations if they are financially able to purchase. Hence, the looming price increase is not anticipated to greatly impact the market dynamics.