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On Wednesday, the Reserve Bank of India raised its benchmark repo rate by 25 basis points to 5.50 per cent, its first hike in nearly four years, while signalling that rate cuts are off the table in the near term and that further hikes could follow amid rising inflation, a weak rupee and higher crude oil prices. Commenting on the RBI's monetary policy, CREDAI National President Shekhar Patel and NAREDCO President Parveen Jain said the increase in the repo rate would lead to a rise in interest rates on home loans, which in turn could have some impact on housing sales. Both Patel and Jain said that the hike in the repo rate should be seen in the context of global uncertainties and inflationary concerns. The CREDAI President stated that the RBI monetary policy would have a bearing on the cost and availability of funds. "We are also entering the festive season, which is an important period for the housing market, and the increase in borrowing costs could have some impact on sales during this period, although the underlying demand for housing remains strong," Patel said. Jain noted that the housing demand remains strong at present. "We expect the impact of this increase on the residential market to remain limited, supported by strong buyer sentiment, festive demand and the long-term need for homeownership," the NAREDCO President said. The real estate sector will continue to demonstrate strength and resilience in maintaining its current momentum, Jain observed. Patel further said, "We should understand that for a homebuyer, the interest rate at any particular point is only one part of a much longer decision." "A home loan is generally a commitment of at least 15 years. During that period, there will be times when rates go up and times when they come down. We should not look at repo rate changes in isolation. What matters is the long-term outlook for the economy and overall growth," he added. According to real estate consultant Anarock, the housing sales in India's seven major cities rose 3 per cent annually to over 1 lakh units during July-September on better demand in Mumbai Metropolitan Region, Bengaluru and Hyderabad. In value terms, Anarock said that the total sales rose by 2 per cent to Rs 1.55 lakh crore during July-September from Rs 1.52 lakh crore in the corresponding period of the preceding year. CREDAI and NAREDCO are the two major industry bodies for real estate developers with a combined membership of around 20,000 builders. (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
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