RBI’s Unchanged Repo Rate Bodes Well for Interest-Sensitive Sector

Ramani Sastri - Chairman & MD, Sterling Developers Pvt. Ltd shares his positive views on RBI maintaining a low repo rate that would be helpful for the real estate sector. The RBI’s decision on keeping the repo rate unchanged will certainly bode well for all interest-sensitive sectors ahead of the New Year when the economy is on its road to recovery. For home buyers, this decision will help reinstate confidence and further access to affordable home loans and help foster housing demand. It has also helped the sector to regain its strength as well as stay afloat during these unprecedented times. The homebuyers should take advantage of the current situation because there are chances that the prices might go upwards later on account of reducing supply and the pressure of increased costs of raw materials. There has been a fundamental change in buyers’ expectations and attitude towards homeownership, which has already resulted in the residential real estate sector perform exceedingly well across all segments in the post Covid era. We are also seeing a lot of first-time home buyers, who were not able to reach a decision earlier are eager to conclude the deal now. Real estate is definitely an asset class that one must remain invested in today and in the long term and looking ahead, we do believe that markets will see sustained growth. With economic recovery on a positive note, growth needs to be carefully nurtured. This can be done by giving a fillip to the economy by incentivizing real estate. With improved GDP growth estimated in the near future, we expect that the real estate sector will contribute a substantial share to overall economic development.