By Mr. Rohan Khatau, Director, CCI Projects Pvt Ltd on RBI MPC Announcement
“With the RBI raising the repo rate by 25 basis points to 5.5%, the move reflects the central bank’s focus on managing emerging inflationary pressures while maintaining a positive outlook on economic growth. For the real estate sector, the immediate impact is likely to be measured, particularly as housing demand in Mumbai continues to be supported by strong economic activity, infrastructure development and sustained buyer confidence.
While higher borrowing costs could marginally influence financing decisions at the margin, the underlying demand for quality housing, especially across established micro-markets in the Mumbai Metropolitan Region, remains resilient. The RBI’s upward revision of its GDP growth forecast to 7.1% is also encouraging, as sustained economic growth and employment generation are important drivers of housing demand. Going forward, it will be important to keep inflation under control while ensuring that borrowing costs do not slow down consumer demand, investment and the overall momentum in the real estate market” – Mr. Rohan Khatau, Director, CCI Projects