केंद्र जल्द ही जम्मू-कश्मीर, लद्दाख में RERA को सूचित करेगा

RBI’s repo rate cut to boost home sales

Real estate builders have cheered the Reserve Bank of India's (RBI) decision to reduce repo rate by 25 bps, a move that may help ease home loan rates and boost sales. RBI's monetary policy committee (MPC), led by Governor Shaktikanta Das, on Thursday announced a 25 basis points. (One basis point is equal to one hundredth part of percentage) cut in, in its first bi-monthly rate review of financial year 2019-20. The repo rate now stands at 6 per cent. Property Builders hope the current rate cut would translate into lower EMIs on housing loans and will aid the sluggish property market. “We hope that the reduction in rate are passed on by the banks to the home buyers. Lower interest rates, along with the recent reduction in GST rates for under construction properties, should provide the fillip to end user demand. The real estate sector has been looking forward to such stimuli to boost sales velocity,” said *Shishir Baijal, Chairman & Managing Director, Knight Frank. This is the second time in 2019 that the central bank has cut the repo rates. Reserve Bank of India (RBI), in its bi-monthly monetary policy held on February 7 has cut the key policy rates by 25 basis points (bps) "The actual inflation has stayed below than projected since February so there was a space for a further cut down in the rates. This rate cut will affect the buying sentiments in a roundabout way as it is likely to make home loans cheaper. It will be a buoyant Gudipadwa for the sector,” said Rohit Poddar, Joint Secretary, NAREDCO West and Managing Director, Poddar Housing and Development ltd on the Repo Rate. Last time the central bank cut rates was in August of 2017. However, RBI has kept the rates unchanged in the last two monetary policy announcements held in October and December 2018 this fiscal. It hiked rates twice in June and August 2018, by 25 bps both times. Indian real estate market showed some signs of recovery in 2018. According to JLL India, after a lull of 3 years residential markets in top 3 cities of Bengaluru, Mumbai and Delhi-NCR showed definite signs of recovery in 2018 with both launches and sales showing signs of improvement. While Delhi-NCR saw 71% year-on-year growth in sales, Bengaluru and Mumbai saw 17% and 10% jump in property sales in 2018 as compared to the same period last year. Source: ET Realty

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