Reserve Bank Of India / Lakhs of people are keeping an eye on RBI, will it affect home loan EMI?

Reserve Bank Of India: Today is a very important day for the countrymen who are facing the brunt of inflation. The decision on the repo rate will be announced by Reserve Bank of India (RBI) Governor Shaktikanta Das after the meeting of the Monetary Policy Committee (MPC). Experts and market stakeholders are keeping an eye on this, as this decision can have a profound impact on the common people and the real estate sector.

Possible changes in repo rate and its meaning

The repo rate is the rate at which banks take loans from RBI. If this rate decreases, the loan becomes cheaper for banks. This has a direct impact on home loans, car loans and other consumer loans. At present, the repo rate is 6.50%, which has been kept stable since February 2023.

However, due to inflationary pressure and global uncertainties, there is little chance of change in the rate. According to a Reuters survey, experts believe that this time there is less chance of a cut in the repo rate.

Impact on real estate

Repo rate and real estate are directly related. Getting home loan at low interest rates reduces the cost of buying a house, which gives a boost to the real estate sector. If RBI cuts the rates this time, then:

The cost of home loan will be reduced: This will provide relief to home buyers and increase demand.

Investment in the sector will increase: Confidence among developers and investors will be strengthened.

Emphasis on affordable housing: Real estate activities will accelerate, especially in tier-2 and tier-3 cities.

Opinion of developers and experts

Manoj Gaur (Gaud Group): Stability in the repo rate will maintain stability in the market and confidence will increase among buyers and developers.

Amit Modi (County Group): If rates are cut, it will boost not only luxury housing but also affordable housing.

Harsh Gupta (Sundream Group): A cut in the repo rate will prove to be positive for the real estate sector, giving home buyers the benefit of affordable interest rates.

Prospects in small cities

Experts believe that a possible cut in the repo rate will accelerate real estate activities in small cities. Investor interest will increase in tier-2 and tier-3 cities like Goa, Lucknow, Dehradun and Chandigarh.

Economic stability and consumer confidence

RBI's consistently stable policies have strengthened consumer confidence. If rates are cut, it will be encouraging not only for real estate but the entire economy.

Future expectations

Although there is little chance of a change in rates this time given inflation and global uncertainties, experts expect a cut by the end of 2024. This move will prove to be positive not only for real estate but for the entire financial market.

Conclusion

RBI's decision today will prove to be important for real estate, investors and common citizens. Whether the repo rate remains stable or is cut, this decision will define the direction of the Indian economy and real estate sector.