Repo Rate Cut Sparks Hope for Real Estate Revival
The RBI's decision to cut the repo rate by 50 basis points is praised by realtor bodies CREDAI and NAREDCO. This measure is expected to boost housing sales, particularly in low-cost segments, by lowering interest rates and making home loans more affordable, encouraging first-time buyers and improving market sentiment.
- Country:
- India
The recent decision by the Reserve Bank of India (RBI) to slice the repo rate by an unexpected 50 basis points has been embraced by real estate apex bodies CREDAI and NAREDCO. This bold move aims to invigorate consumer confidence, particularly enhancing the landscape for mid-income and affordable housing segments.
As RBI introduces a third consecutive rate reduction, coupled with a decrease in the cash reserve ratio for banks, the intention is clear — to inject necessary liquidity amidst ongoing geopolitical and tariff-related economic pressures. Leaders like CREDAI President Shekhar G Patel and NAREDCO National President G Hari Babu believe this could make home loans more accessible and affordable for many Indians.
This strategy is anticipated to not only ease home loan EMIs but also energize the real estate market by improving buyer sentiment. A rejuvenated housing sector is likely to have ripple effects, benefiting allied industries and contributing positively to the broader economy.
(With inputs from agencies.)
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