RBI's Rate Cut: A Boon for Affordable Housing Market
CREDAI hails RBI's 50 basis point repo rate cut as a timely move to boost housing sales, especially in the mid-income and affordable housing segments. This decision is expected to improve consumer sentiment and home loan affordability, benefiting the struggling affordable housing sector amidst declining sales.
- Country:
- India
The Confederation of Real Estate Developers' Associations of India (CREDAI) applauds the Reserve Bank of India's bold move to slash the repo rate by 50 basis points, viewing it as a catalyst for increased residential property sales. This decision is expected to boost consumer confidence, particularly benefiting the mid-income and affordable housing markets that have faced downturns in recent years.
CREDAI President Shekhar G Patel emphasized that the RBI's rate cut is a strategic initiative aimed at stimulating domestic demand. He highlighted the decision's potential to enhance home loan affordability, particularly by reducing EMIs, thus encouraging more first-time homebuyers to enter the market.
According to Patel, the cumulative 100 basis point reduction over the previous six months is set to revitalize the affordable housing sector, which has been under considerable pressure. Lower interest rates are anticipated to increase financial viability for developers and improve purchasing capabilities for homebuyers. Meanwhile, industry observers have noted a decline in housing sales across major cities during the January-March quarter compared to the previous year.
(With inputs from agencies.)
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