Demand in India’s rate-sensitive real estate sector remains strong as home buyers overlook concerns about rising interest rates. The Reserve Bank of India has raised rates by 250 basis points since May 2022 to curb surging prices. However, pent-up demand after the pandemic and increasing consumer confidence have helped the market sustain its growth trajectory. Dhruv Agarwala, CEO at REA India, which is owned by the Australia-listed REA Group, stated that the company has witnessed quarter-on-quarter growth despite rising rates. He attributes this resilience to the changing perception towards home ownership, with people seeking larger homes due to the ongoing shift to hybrid work.

In 2020, Australia’s REA Group acquired a majority stake in Elara Technologies, renaming it REA India. The company operates multiple online real estate marketplaces, including popular platforms like Housing.com and PropTiger.com. Agarwala noted that demand for properties in larger towns and cities has been robust, with smaller cities also showing great promise. The spillover effects of higher rents and sales values in big cities have contributed to this growth trend.

Overall, the real estate sector in India continues to demonstrate resilience and strong demand, defying concerns about rising interest rates. Home buyers are prioritizing larger homes as their preferences and work situations evolve. The growth in property demand extends to smaller cities as well, driven by the spillover effects of the thriving real estate market in metropolises. REA India, backed by its parent company REA Group, is at the forefront of this market, operating leading online platforms that connect buyers and sellers in the real estate industry.