Real Estate Developers Urge RBI for Repo Rate Cut to Boost Housing Demand

Real estate players are urging the Reserve Bank of India (RBI) to reduce the repo rate in its next monetary policy to lower home loan interest rates. This move, they believe, would significantly boost housing demand. The RBI recently decided to keep the repo rate unchanged, citing factors such as economic growth and inflation.

Real estate developers are urging the Reserve Bank of India (RBI) to consider reducing the repo rate in the next monetary policy to lower the interest rate on home loans and boost housing demand. On Friday, the RBI maintained the repo rate at its current level.

Commenting on the decision, Boman Irani, National President of realtors apex body CREDAI, highlighted that the country achieved high economic growth last fiscal year, supported by all sectors including real estate. He noted that this, coupled with favorable macro-economic indicators and a low Consumer Price Index (CPI) at 4.83 percent in April, provides the RBI with a compelling opportunity to support sustainable economic development across industries.

Irani and other industry leaders like Pradeep Aggarwal, Chairman of real estate firm Signature Global, believe that cutting the repo rate for the first time since February 2023 could further boost consumer spending and benefit the real estate sector, which is already seeing strong demand. Aggarwal suggested that economists anticipate rate cuts of 25-50 basis points in the second half of the fiscal year if inflation continues to decline.

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