Ashish Kukreja, CEO and Founder of Homesfy.in and Mymagnet.io, is of the opinion that while the recent RBI repo rate hike may affect the real estate sector in the short term, it will not cause irreparable harm to it.
The recent increase in repo rate by 25 bps to 6.5% will ensure that India maintains its steady growth and price stability with projected GDP growth of 6 to 7% and inflation of 5.3% in FY 2023–24. The repo rate increase will also not affect the luxury segment, one of the prime growth engines of the realty sector.
However, a rate cut would be highly appreciated, as low-interest rates can revitalise overall real estate demand and improve liquidity.As per industry reports, India’s top seven prime residential markets have had the highest sales in the first half of FY 2022–23 compared to the last decade. By 2030, the real estate sector is projected to grow to US$ 1 trillion from US$ 200 billion in 2021, contributing 13% to India’s GDP. Moreover, by 2040, the real estate industry is predicted to grow to Rs 65,000 crores. The hospitality, retail, and commercial real estate sectors are snowballing, fuelling India’s growing infrastructure needs.
