Ramesh Nair, CEO, India and Managing Director, Market Development, Asia, Colliers

“RBI hiked the repo rate for the fourth time in a row by a further 50 bps to 5.9% as the government remains committed to tame inflationary pressures amidst global headwinds. However, domestic economic activities remain promising, thus providing the Central Bank with the required elbowroom to continue withdrawing its accommodative stance. Resultantly, RBI slightly moderated its growth target to 7% for FY 2022-23.

In response, banks are expected to continue raising their home loan rates in the next few months. With the festive season in the offing, developers are likely to dole out attractive schemes to attract fence sitters and first-time homebuyers. As the rate hike was on expected lines and the market has largely recovered from the pandemic lows, the home buying sentiment is not likely to be impacted significantly.

Mr. Amit Goyal, CEO, India Sotheby’s International Realty 

In the last 5 months, RBI increased the repo rate by 190 basis points, from 4% In April to 5.90% now. The RBI has taken into consideration the broader economic and liquidity scenario and needs to curb the inflation further. Falling rupee is also a major concern amidst global uncertainty, besides high fuel prices. It is important to understand that policy rates and regulation will decide the long-term growth of the economy and the real estate sector.

The hike might impact consumption sentiments negatively ahead of the festive season. However, from a home buyers’ perspective, home loan rates will still remain below 9% per annum and they must utilize this opportunity and make their purchases by cashing in on offers and festive discounts in the market.

Piyush Bothra, Co-founder and CFO, Square Yards 

The RBI has taken another aggressive stance by recalibrating the repo rates for the fourth time this year to further rein in the inflation and restore the economic health of the country. In real estate parlance, this revision won’t have any significant impact on consumer sentiments which is buoyant at present. In spite of the hike, the affordability of the home loan is still good, and robust housing demand and growing income stability will continue to keep the real estate sector in an advantageous position. Besides, with the festive season knocking on the door, the residential sector is expected to put up a good show, as the market is overflowing with new buyers. However, we may see an exercise of caution from second and upgrade home buyers.

Saransh Trehan, managing director, Trehan Group 

This is the fourth consecutive rate hike by the apex bank in the last five months. However, the demand in the housing market continues to remain robust despite subsequent rate hikes, in fact in many cities it is improving. So, we don’t see any major impact in the scenario even after today’s RBI decision. However, with home rates hovering between 8-9%, further tightening, if any, will start to impact the sectoring and thereby the overall economy.