Dr Niranjan Hiranandani, National Vice Chairman of the National Real Estate Development Council (NAREDCO), has hailed the Reserve Bank of India’s (RBI) recurrent pause in the repo rate hike at 6.50% as record-high inflation gradually eases off. Dr Hiranandani emphasizes that this accommodative stance by the RBI will have a positive snowball effect, providing respite in home loan interest rates and fueling an uptick in housing sales across all market segments.
With cooling inflation, stable home loan rates, and conducive real estate market dynamics, discerning homebuyers are encouraged to avail themselves of the current favorable conditions. Against the backdrop of buoyant GDP growth, domestic demand, and sufficient liquidity, the timing is ideal for potential buyers to make their move. Furthermore, with the festive season approaching, the hiatus in interest rate hikes is expected to act as a growth catalyst and significantly boost sales velocity.
Dr Hiranandani notes a notable rise in the purchasing power of Indian consumers, as they tap into alternative income avenues such as capital markets, experience salary hikes, explore new job opportunities, and enjoy gains in rental income. These positive factors are acting as strong funding streams for homebuyers seeking to invest in residential assets. The supply of new housing stock is in tandem with the increasing demand across various property markets. The Indian homebuyer demographic, driven by emerging first-generation millionaires and enhanced business capacity utilization, has a strong inclination towards luxury lifestyles. This trend is prompting new homebuyers to secure their dream homes, prioritizing social security and stability.
The stability of the Indian rupee amidst global geopolitical uncertainties has further bolstered India’s reputation as the fastest-growing economy. Looking ahead, the industry anticipates a potential fall in interest rates as the government and regulatory apex bodies reorient their focus on the GDP growth barometer.
Dr Niranjan Hiranandani’s optimistic outlook highlights the transformative potential of the real estate sector and its impact on India’s economic growth. As industry leaders and policymakers continue to work towards a conducive environment, the positive momentum in housing sales and the overall economy is expected to endure.
About Dr Niranjan Hiranandani:
Dr Niranjan Hiranandani is the National Vice Chairman of the National Real Estate Development Council (NAREDCO) and a prominent figure in the Indian real estate industry. With vast experience and expertise, he plays a crucial role in shaping policies and driving growth in the sector.