Home Loan Interest Rate, EMI Set To Remain High As RBI Keeps Repo Rate Unchanged
Today's RBI Monetary Policy Repo Rate: The RBI's Monetary Policy Committee agreed to maintain the repo rate at 6.50% on december 6, 2024. This implies that neither the real estate market nor home loan EMIs will alter right away. Your EMIs will remain the same for the time being since banks are unlikely to modify their lending rates as long as the repo rate stays the same.
One of the main factors influencing home loan interest rates nationwide is the Reserve bank of India's (RBI) repo rate.
Industry Response
The RBI's decision to keep the repo rate at 6.5% for the eleventh straight year is a balanced strategy to control inflation and growth, according to Manju Yagnik, SVP of NAREDCO maharashtra and Vice Chairperson of the Nahar Group. This stability is essential for sustaining economic momentum, according to Yagnik, as the real estate industry contributes 7% to the economy, and India's GDP is predicted to expand between 6.5 and 7% in FY 2024–2025.
Consistent repayment terms are guaranteed by a stable rate, which boosts homebuyers' trust and promotes industry investment. Real estate is a major engine of economic growth, increasing demand and making a substantial contribution to India's economic advancement due to rising property values, strong financing conditions, and a stable market, Yagnik continued.
"RBI's decision is a great move for the real estate sector," stated vishal Jumani, Joint Managing director of supreme Universal. We have high hopes for the sector's future growth, as the Knight Frank research states that it is already worth $493 billion and accounts for 7.3% of India's GDP.
"This interest rate stability is a good and timely step, as our predictions show that the industry would grow to Rs 5.8 trillion by 2047, representing 15.5% of India's economic output. High-value markets like mumbai and pune especially benefit from this interest rate stability," Jumani continued.
Jumani went on to say that stable loan rates will probably boost consumer confidence, which will maintain demand and promote industry expansion.
Furthermore, it is anticipated that the beneficial relationship between tax relief policies and sales of upscale real estate will continue. Real estate sales will continue to be fueled by the combination of steady interest rates and lower stamp duty.
"This favorable environment will benefit both developers and homebuyers, ultimately fostering growth in the real estate sector."
The demand for real estate is impacted by changes in interest rates. Generally speaking, lower interest rates increase demand by making borrowing more accessible, which may raise real estate values. Higher interest rates, on the other hand, may lessen demand and cause real estate values to decline.
One of the main factors influencing home loan interest rates nationwide is the Reserve bank of India's (RBI) repo rate.
Industry Response
The RBI's decision to keep the repo rate at 6.5% for the eleventh straight year is a balanced strategy to control inflation and growth, according to Manju Yagnik, SVP of NAREDCO maharashtra and Vice Chairperson of the Nahar Group. This stability is essential for sustaining economic momentum, according to Yagnik, as the real estate industry contributes 7% to the economy, and India's GDP is predicted to expand between 6.5 and 7% in FY 2024–2025.
Consistent repayment terms are guaranteed by a stable rate, which boosts homebuyers' trust and promotes industry investment. Real estate is a major engine of economic growth, increasing demand and making a substantial contribution to India's economic advancement due to rising property values, strong financing conditions, and a stable market, Yagnik continued.
"RBI's decision is a great move for the real estate sector," stated vishal Jumani, Joint Managing director of supreme Universal. We have high hopes for the sector's future growth, as the Knight Frank research states that it is already worth $493 billion and accounts for 7.3% of India's GDP.
"This interest rate stability is a good and timely step, as our predictions show that the industry would grow to Rs 5.8 trillion by 2047, representing 15.5% of India's economic output. High-value markets like mumbai and pune especially benefit from this interest rate stability," Jumani continued.
Jumani went on to say that stable loan rates will probably boost consumer confidence, which will maintain demand and promote industry expansion.
Furthermore, it is anticipated that the beneficial relationship between tax relief policies and sales of upscale real estate will continue. Real estate sales will continue to be fueled by the combination of steady interest rates and lower stamp duty.
"This favorable environment will benefit both developers and homebuyers, ultimately fostering growth in the real estate sector."
The demand for real estate is impacted by changes in interest rates. Generally speaking, lower interest rates increase demand by making borrowing more accessible, which may raise real estate values. Higher interest rates, on the other hand, may lessen demand and cause real estate values to decline.