Sachin Bhandari And Rajat Khandelwal See Resilient Housing Demand Despite Repo Rate Hike

“The increase in the repo rate is not in the best interest of the common man. Fuel prices are already high, inflation is putting pressure on household budgets, and people are already dealing with rising costs. At a time like this, an increase in borrowing costs adds to that pressure.

 

That said, we do not expect a marginal rate increase to materially impact housing demand. Pune and MMR continue to have strong fundamentals, backed by employment, infrastructure and genuine end-user demand. For a homebuyer, buying a home is a long-term decision. If the location, product and value are right, a small movement in interest rates should not change that decision. The market may become a little more selective, but demand for the right homes in the right locations will remain strong.”

“The RBI’s decision to increase the repo rate reflects a cautious approach towards maintaining macroeconomic stability amid evolving economic conditions. While the rate hike may lead to some upward pressure on borrowing costs and EMIs in the near term, we believe the underlying demand for quality housing, particularly in premium markets such as MMR, NCR, and Pune, remains resilient. At Tribeca, we see end-user confidence, strong economic fundamentals and the long-term value proposition of premium real estate continuing to support market momentum. A stable and well-calibrated interest rate environment will be important in sustaining healthy growth across the sector.”