The outlook was further supported by Vimal Nadar, Head of Research at Colliers India, who noted, “Stable repo rate translates into stability in interest rates and augurs well for the Indian real estate sector. Housing sales across major cities of the country are likely to end on a strong note in 2024.”
The ripple effects of this decision extend beyond metropolitan areas. Piyush Kansal, Executive Director of Royale Estate Group, said, “This stability continues to create supportive growth for both buyers and developers, encouraging greater investments. The decision is also in line with the sector’s growth in tier 2 and 3 cities.”
Focusing on the luxury housing segment, Manit Sethi, Director at Excentia Infra, said, “as luxury housing gains momentum in tier 2 cities, this steadiness will stabilize the loan rates and sustain buyers’ interest in the sector. On the other hand, the decision to cut CRR by 50bp will facilitate liquidity in the market.”
Rajeev Radhakrishnan, CIO – Fixed Income, SBI Mutual Fund anticipated that in the near term we could anticipate other fine tuning of liquidity measures such as repo auctions apart from screen-based OMO in case core liquidity tightens further.
“Given the Q2FY26 CPI projections, in the absence of any incremental inflation shocks, the Feb review could be live for a repo rate reduction,” he added.