New Delhi, Dec 5 (PTI) Real estate industry bodies CREDAI and NAREDCO on Friday said RBI's move to cut repo rate by 25 basis points would lead to reduction in interest rates on home loans and boost housing
demand.
The central bank has slashed key benchmark interest rate for the first time in six months and took steps to boost liquidity to support a "goldilocks" economy in the face of high US tariffs.
"This move will further strengthen positive market sentiment, lower borrowing costs, support credit growth, and stimulate demand across sectors—including real estate," CREDAI President Shekhar Patel said.
With this rate cut, he said the RBI intends to bolster India's economic growth at a time when inflation is at a decadal low.
"As liquidity is no longer a key concern for the central bank, CREDAI anticipates a strong close to the financial year and sustained momentum in housing demand across all segments," Patel said.
NAREDCO President Parveen Jain described the repo rate cut as an important step toward giving fresh momentum to the economy and the real estate sector.
"This reduction will improve liquidity and encourage new investment across several sectors. For real estate, lower interest rates make home loans more affordable, which supports homebuyers and strengthens demand," he said.
The positive impact of the repo rate cut would extend to allied industries as well, helping generate more employment, Jain added.
Housing sales surged in the last three calendar years (2022-24) on pent-up demand, following a huge slowdown during 2020 and 2021 because of the COVID pandemic. Luxury housing segment led this growth in sales.
However, the sales of residential properties in volume terms have fallen in the first nine months of the current calendar year on higher base effect and a sharp appreciation in the prices post pandemic.
Experts believe that high economic growth in the first two quarters of 2025-26 fiscal year and lower mortgage rates could boost housing demand in the coming months. PTI MJH MJH ANU
ANU
