The RBI repo rate hike by 25 basis points to 5.25% reflects the central bank’s focus on price stability amid a challenging macroeconomic environment, according to Mr. Pradeep Aggarwal, Founder and Chairman, Signature Global (India) Ltd.
Aggarwal said housing demand has remained resilient despite global uncertainty. Rising incomes, urbanisation and the growing aspiration for homeownership have continued to support the housing market.
Higher Borrowing Costs May Affect Buyer Sentiment
According to Aggarwal, volatile crude prices, currency pressures and persistent inflation risks have made the economic environment challenging. The Reserve Bank of India has continued to balance economic growth with price stability.
He said a stable repo rate would have better supported the current housing demand momentum. The RBI repo rate hike could temporarily affect buyer sentiment, particularly in the mid-income housing segment.
Housing Sector Expected to Remain Resilient
Despite the increase in borrowing costs, Aggarwal expects the housing sector to remain resilient. Strong market fundamentals and the upcoming festive season could continue to support demand.
The rate decision is expected to remain an important factor for homebuyers and developers as the housing market enters the festive period.
