There is a reduction in the lending rate by the Reserve Bank of India (RBI) just ahead of the festive season which will help in boosting housing demand, especially in the affordable housing segment. A good monsoon in progress, low inflation numbers, favourable global environment and an overall uptick in industry sentiments seem to be the catalyst for this rate cut, according to them. RBI reduced the short-term lending rate, or repo rate, by 25 basis points to 6% at its third bi-monthly policy review.
Implementation of GST has completed its very first month and a great response can be already observed as the buyers’ queries are increasing day by day. A rate cut at this moment will boost these sentiments further where footfalls and conversions are bound to increase. Final festive season of this calendar year is nearing and this rate cut can allow the banks to cut down on their lending rates further. The economy is shaping up well with a growth trajectory becoming visible for the real estate sector as well.
It is a welcome move, especially to combat the odds industry was seeing in recent times. Cheaper home loan definitely will boost positive sentiments amongst the home buyers and in turn, will help the developers to gain the momentum. With RBI’s this move many home buyers will get a boost to own their dream home at the most affordable prices.