Business News / Why is this sector swinging before RBI's decision? Is this the reason?

Business News: RBI MPC meeting has started from 3rd April. This meeting will continue till April 5. The decisions taken in this meeting will be announced by the RBI Governor on April 5 itself. Ahead of the decisions taken in this meeting and the announcement of the RBI Governor, one sector seems to be quite excited. Perhaps this sector has not got any indication as to what is going to be the biggest decision taken in the RBI meeting?

By the way, this meeting of RBI is the first meeting of the new financial year. This meeting has become even more important before the Lok Sabha elections. The meeting that will be held after this will be held from 5th to 7th in the month of June. The election results will be announced on June 6. The country will come to know who will be in power.

In such a situation, the question becomes even bigger whether the common people will get relief from the increased EMI before the elections or not? Or can RBI take some stringent steps after looking at the inflation data? The question is also whether the MPC of RBI will decide to freeze the interest rates for the 7th consecutive time? Let us try to decode all these questions from the experts of that sector which is quite happy at present.

Which sector is happy?

The sector which is being reported happy with the first meeting of the new financial year is none other than real estate. Experts associated with this sector estimate that RBI will not make any change in the repo rate again. This means that RBI will not increase interest rates. By the way, common people are waiting to know when they will get relief from this increased inflation.

On the other hand, experts in the real estate sector argue that the kind of environment prevailing at the global level. Even after the announcement, the US Fed is not cutting interest rates. Also, inflation figures in the country have not reached the target level of RBI.

In such a situation, freezing of interest rates is also a matter of relief for the people of the country and economic growth. When there is no increase in the repo rate, there will be no increase in the EMI of home buyers. Due to which the real estate sector will get a boost.

Real estate is on boom for two years

If we talk about the last two years, real estate has appeared to be on a boom. People have made a lot of home purchases in the years 2022 and 2023. Due to which the number of unsold properties has reduced significantly, especially in the Delhi NCR area. Apart from this, developers are also giving various types of offers. Because of which people who want to buy a house are continuously making inquiries. They are also booking houses.

Demand for luxury homes

According to Manoj Gaur, Chairman of CREDAI NCR and CMD of Gaur Group, the economy is strong. The luxury and mid segment is performing much better. In the first quarter of calendar year 2024, the share of luxury homes in new homes launched in the first quarter has been seen at 34 percent. Although the decline in sales of cheap houses is a serious problem, RBI needs to look into this also.

On the other hand, SKA Group Director Sanjay Sharma says that the previous decisions to keep the repo rate frozen have not had any bad impact on the real estate sector. The past year has been much better for the sector. Even if there is no increase in the repo rate this time, there is no possibility of any loss, rather the sector will get a further boost.

Will strengthen the confidence of home buyers

According to Dr. Amish Bhutani, Managing Director of Group 108, the repo rate remained frozen last year. This decision was very good for the economy and real estate. If there is no change in repo rates this time too, then it can be called a better outlook for real estate from RBI. Also, this decision will further strengthen the confidence of home buyers.

Yash Miglani, director of Migson Group, says that the repo rate has remained at a high level at 6.5 percent since February 2023. The country's economy remains strong and inflation is under control. It is expected that RBI will not make any changes in the repo rate and will take any decision keeping in mind the home buyers and developers.