Real Estate Leaders Appeal for Repo Rate Reduction

In a call to action, real estate associations CREDAI and NAREDCO have urged the Reserve Bank of India (RBI) to lower its key repo rate in the upcoming monetary policy announcement, aiming to boost demand in the housing sector, particularly for affordable homes.

The groups expressed their hope that banks will pass on the benefits of past rate cuts to both current and new home loan borrowers, following the RBI's decision to maintain the repo rate at 5.5 percent pending a clearer understanding of international economic trends.

Highlighting the importance of predictable borrowing costs, CREDAI President Shekhar Patel explained that stability in interest rates is crucial for long-term planning by buyers and developers alike. The real estate sector looks forward to potential repo rate reductions to energize housing demand, especially amid increased prices and slower sales in major cities.

(With inputs from agencies.)