The Reserve Bank of India (RBI), in its recent credit policy announcement on December 6, 2024, kept  the repo rate  steady at 6.5% .  Additionally, the RBI reduced the cash reserve ratio (CRR) by 50 basis points, bringing it down to 4% to boost liquidity for lenders. Torbit Realty presents the views of industry experts on RBI’s move and the road ahead for the housing finance .

G Hari Babu, National President, Naredco

RBI’s latest credit policy, maintaining the repo rate and cutting CRR, is a balanced approach to sustaining economic stability while fostering liquidity. However, it is hoped that RBI will consider reducing repo rates in its next policy review to give a greater impetus to affordable housing.

Dr Niranjan Hiranandani, CMD, Hiranandani Group

RBI’s  policy stance is contarary to the anticipated 0.50 bps repo rate cut. A strategic reduction in interest rates would have made home loans more affordable, propelling  real estate demand, particularly in the affordable segment. However,  a cut  in the CRR will make more funding available for business growth.

Anuj Puri, Chairman, Anarock

A repo rate cut would have helped boost housing sales  momentum further, particularly since we have seen sales tapering in the last two quarters.

Aman Sarin, Chairman, Anarock

As the housing market, particularly luxury segment continues to exhibit strong demand, the cut in CRR which reduces banks’ costs, leading to decrease in interest rates, is expected to further boost the sector.

Pradeep Aggarwal, Founder & Chairman, Signature Global (India) Ltd

This  continuity  in credit policy provides a stable environment for the real estate sector, enabling developers to plan with confidence and homebuyers to benefit from unchanged borrowing costs. However, a rate cut in the near  future would infuse much-needed liquidity into the real estate sector, enhancing affordability and accelerating  investment and growth .

Sandeep Chhillar, Founder and Chairman of Landmark Group

Keeping the repo rate unchanged  came as a surprise. The reduction in the existing repo rate would have been a great push for fence-sitters planning to take loans anticipating lower EMIs. However, keeping in mind the high demand and strong market sentiment, the realty sector is likely to sustain high growth momentum for the coming year.

Sanjeev Arora, Director 360 Realtors

By keeping the repo rate steady at 6.50% for one more  time, the RBI has once again provided relief to both homebuyers and developers as the real estate sector continues to thrive, with growing interest in mid-range, premium, and luxury housing segments.  This positive move is expected to maintain the sector’s upward momentum, benefiting all stakeholders .

Uddhav Poddar, CMD, Bhumika Group

While the RBI’s decision to maintain the status quo shows stability, the real estate industry would actually  benefit from a rate cut as the repo rate influences housing affordability and loan repayment terms.