RBI Monetary Policy Review: Real estate developers hail Repo Rate cut
RBI’s decision to slash the Repo Rate by 25 basis point to 6.25 per cent is a welcome and unexpectedly positive move, given the sops that the recent expansionary budget gave to farmers at an additional cost of Rs 75,000 crore per annum.
Welcoming the Reserve Bank of India (RBI) monetary policy decision to cut Repo Rate by 25 bps to 6.25 per cent, Indian real estate developers have said that the move would make home loans easier and cheaper for the home buyers provided the public sector banks and other lending institutions pass on the benefit to their customers.
Anshuman Magazine, Chairman & CEO — India, South East Asia, Middle East & Africa at CBRE said, “The Reserve Bank of India’s decision to slash the repo rate by 25 basis points is a welcome one. This was expected, given the backdrop of low inflation and rising growth concerns in the economy. This will spur investment and boost demand. The rate cut coupled with the budget stimulus for the economy, and the real estate sector in particular, will impact consumer sentiments positively.”
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— ANI (@ANI) February 7, 2019
Standing in sync with CBRE views Anuj Puri, Chairman at ANAROCK Property Consultants told, "RBI’s decision to slash the Repo Rate by 25 basis point to 6.25 per cent is a welcome and unexpectedly positive move, given the sops that the recent expansionary budget gave to farmers at an additional cost of Rs 75,000 crore per annum. It was also overdue, as this has been the first cut in a long time. It definitely augurs well for the real estate sector which also received a budget bonanza in the previous week."
Speaking from the buyer's perspective Rakesh Yadav, CMD, Antriksh India Group told, "The rate cut is a good move by the RBI provided the public sector and other lending bodies pass on this benefit to the loan applicants." He said that rate cuts give a substantial push to property buyer sentiments, and it was certainly high time for such a cut. Home loan interest rates increased by as much as 5-7 per cent in the last one year because the RBI hiked its Repo Rates by 50 basis points over the same period. In other words, home loans had become a more expensive proposition.