Sat. May 25th, 2024

Mr. Ramani Sastri – Chairman & MD, Sterling Developers

There is no denying the fact that the increase in the repo rate would definitely impact housing affordability. The repeated rate hikes may have a short-term impact on overall housing demand and the buyers’ overall acquisition cost would go up. This comes at a time when the real estate sector had shown recovery across important property markets driven primarily by end-users, and this hike may again impact the rate-sensitive sector. However, there is a silver lining as the government has earmarked a huge outlay on infrastructure and is geared towards higher public expenditure as outlined in Budget 2023-24. Additionally, the buying power of consumers has gone up with greater income flow in recent times. Hence, we believe that the demand for residential segment would remain robust in the near future, any hike in interest rates notwithstanding. Also, the strong fundamentals for housing demand will keep the momentum upwards for realty sales. It also has to be kept in view that real estate is considered as the safest bet for investment compared to other instruments. All of this will boost real estate and enhance economic growth in the larger context.

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Mr. Lincoln Bennet Rodrigues, Chairman & Founder, The Bennet and Bernard Company, known for luxury themed homes in Goa

While interest in homeownership has increased in recent times, the luxury segment was the real estate sector’s growth engine, and this trend is expected to continue in 2023 given change in lifestyles. The hike will not have a significant impact on luxury housing as the demand of home buyers in this segment is beyond these considerations. While the hike has been moderate, the affordability of the home loan is still very good. Luxury real estate has also emerged as a preferred choice for NRIs, HNIs, and the uber-rich during the past couple of years. As buyers become progressively more discerning in their choices for a signature style of living, they will be more willing than ever before to take the leap and purchase luxurious homes. However, a cut in the key rates going forward would be widely appreciated as low-interest rates have played a crucial role in the revival of overall real estate demand and improvement in the liquidity situation, which is vital for the sector.

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