Repo rate hike comment | Mr. Atul Banshal, Director Finance, Omaxe Ltd.
The repo rate hike by 25 basis points to 6.5% was much anticipated though it is expected to be the final rate hike as inflation has stabilised to a large extent and expected to remain range bound in the coming months, with a positive outlook target of 4% in 2024. The real estate sector is sensitive to interest rate movements therefore the hike by 25 bps might impact the homebuyers' sentiment, especially in the mid-segment and affordable housing. However, despite the rate hikes in the past, the housing segment has successfully maintained demand momentum across price points. We anticipate there will be a short-term impact on the mid-segment and affordable housing and the expected reduction in the next cycle of RBI review policy offers a balanced outlook. It's essential to keep a long-term perspective and to focus on the broader economic indicators and market conditions that point towards a positive outlook for the real estate market.
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