After the RBI put out a soft stand towards lending by reducing the repo rate, developers are positive that banks and financial institutions will reduce lending rates and boost the housing sector.
Experts say that the RBI’s rate cut can boost the real estate market’s sentiment by several folds. Coupled with the push from the government for affordable housing, homebuyers may now be more motivated to close their deal.
Amit Modi, Director of ABA Corp, said: “We look forward to another follow up on this in the next monetary policy announcement. This is the first time in the financial year 2018-19 that the RBI has cut key policy rates and it was long awaited. In both the earlier instances, the apex bank raised the rates in June and August of 2018 by 25 bp each, so the expectation was that this time cut will also match the raise by 50 bp at least.”
“The rate cut brings confidence to the market, as this will make available more money with banks and lower the EMI burden. The icing on the cake is the government’s extension of the time limit of the PMAY scheme to March 31, 2020, for middle-income group buyers,” Rakesh Yadav, Chairman of Antriksh India, said.
Deepak Kapoor, director of Gulshan Homz, said: “This is a surprisingly good development and indeed a step in the right direction. This will help ease the pressure on the market by attracting more buyers to invest in the sector.”
Pradeep Aggarwal, Chairman of Signature Global, said: “The RBI cut will not only be a positive outcome for the realty sector, but also for all eligible new home-loan borrowers who can take advantage of the subsidy scheme under PMAY. This will be a big boost for the affordable housing and help first-time homebuyers.”
Dhiraj Jain, Director of Mahagun Group, said: “This is really good news for home-loan borrowers with the RBI bringing down the key policy rate by 25 bp, signaling lower interest rates. With lower repo rates, banks will be able to set the direction and reduce interest rates, which will translate into an increase in demand for homes.”
“For the last one and half years, we were expecting a cut in repo rate in every policy review by the RBI — finally, we are relieved today! After the implementation of GST and RERA, the sector is on the revival path and decreased repo rate will be additional support for buyers,” Yash Miglani, Director of Migsun Group, said.
Anil Saraf, CMD of ASF Group, said: “Given the evolving macroeconomic situation in India, the rate cut is an encouraging decision by the RBI. After a pro- middle-class interim budget, reducing the repo rate by 25 bp will, without doubt, bring cheer to the real estate sector. Considering the inflation trends and CPI, this decision, while reducing the home loan rates, will also help in improving the liquidity in the market.”
Source -Times Property, The Times of India, Delhi