Repo Rate Cuts: A Catalyst for Affordable Housing Boom
The RBI's successive cuts in repo rate, totaling 100 basis points since February, coupled with personal income tax relief in the Budget, are predicted to boost demand for affordable and mid-income homes. Real estate developers expect reduced borrowing costs and increased home loan affordability to stimulate the housing market.
- Country:
- India
The Reserve Bank of India's decision to slash the repo rate by 100 basis points since February is poised to rejuvenate the housing sector. Complemented by personal income tax relief, these monetary measures are expected to stimulate demand for residential properties, particularly in the affordable and mid-income segments.
Industry stakeholders, including major real estate developers and financial experts, view the repo rate reduction as a positive step towards lowering borrowing costs and making home loans more accessible. The key interest rate cut by 25 basis points each in February and April is anticipated to trigger a wave of investments and consumer activity within the sector, provided banks relay these benefits promptly.
As inflation remains under control, experts predict a significant boost in housing inquiries and sales. The rate cuts are seen not only as a relief for developers and buyers but also as a potential catalyst for the overall economic growth, fostering renewed confidence in the real estate market.
(With inputs from agencies.)
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