CREDAI, NAREDCO seek interest rate cut in RBI's next policy to boost housing sales during festivals

New Delhi, Aug 6 (PTI) Realtors body CREDAI and NAREDCO said the RBI should consider reducing repo rate during the festival season to boost housing sales while acknowledging that earlier cuts in key policy rates have helped sustain demand for residential properties.

After three successive interest cuts, the Reserve Bank of India (RBI) on Wednesday decided to keep policy rate unchanged at 5.5 per cent and retained the neutral stance, weighed by concerns over tariff uncertainties.

Commenting on the monetary policy, CREDAI National President Shekhar Patel said the central bank's decision "reflects a balanced approach, aiming to cushion the economy against global uncertainties and the evolving landscape of international trade agreements and negotiations in which India is actively engaged".

He noted that the earlier rate cuts played a pivotal role in sustaining strong demand within the housing sector.

"A modest rate reduction at this juncture could have further accelerated this momentum, encouraging more prospective homebuyers, especially in the affordable and mid-income segments," Patel said.

Looking ahead, he expects a potential rate cut during the upcoming festive season.

G Hari Babu, National President of NAREDCO, said the repo rate should be brought down further to enhance sales of residential properties.

"The RBI should consider reducing the repo rate in the next MPC. The real estate market needs a boost right now. A reduction in the repo rate will encourage developers to start new projects and home buyers to buy homes during the festive season," he said. PTI MJH TRB