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Unchanged Repo Rate 6.5% Boosts Real Estate Market Confidence

The Monetary Policy Committee of the Reserve Bank of India stood unchanged on repo rates at 6.5% for the seventh time in a row. This has made the property market more positive. It is believed to have contributed significantly to the industry’s continued expansion and investor faith.

Mahindra Lifespace recorded its highest trading gain of 6.5% and topped the Nifty Realty index (NSE); however, Oberoi Realty and Godrej Properties are not far away, both gaining nearly 3%.

The researcher said that the central bank took this action believing that it would lead to economic stability and growth. A vibrant housing market constitutes a large part of India’s economy, with many developers saying that prevailing interest rates are crucial for maintaining such momentum. Some developers were optimistic hoping for increased project launches because of improving investor sentiment.

However doubts remain, some say it’s okay. Financial analysts caution that it is important to monitor inflation as well as future policy decisions from RBI. Although at present, the situation looks favourable any significant change in the repo rate may impact on real estate market direction.

Thus, according to industry participants, a decision not to change the repo rate by RBI would stabilize the Indian real estate sector. Such anticipated stability in borrowing costs should enhance buyer confidence while also supporting homebuyer demand which are all positive prospects for the industry moving forward.


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