RBI Rate Cut: A Timely Boost for Real Estate Market Sentiment and Growth
The Reserve Bank of India's decision to reduce the repo rate by 50 basis points has been welcomed across the real estate industry, as it is expected to give a significant boost to market sentiment, demand, and liquidity.
Ramani Sastri, Chairman & MD of Sterling Developers, emphasized that affordable financing remains a critical driver of demand in real estate. 'We welcome the RBI's move to cut the repo rate, which will encourage end-users to move forward with home-buying decisions. It is crucial, however, that these benefits are passed on to borrowers immediately through lower home loan rates,' he said. He further noted that developers would also gain from reduced borrowing costs, easing financing pressures and enhancing liquidity. According to Sastri, the rate cut sends a strong signal of policy support, which will help strengthen confidence, attract investments, and accelerate growth in the sector—positioning real estate as a key engine of the nation's economic development.
Lincoln Bennet Rodrigues, Founder and MD of Bennet & Bernard, echoed similar sentiments, calling the rate cut a "welcome move" that will positively impact affordability, especially in the budget and mid-income housing segments. While the luxury housing market is less influenced by interest rates, Rodrigues pointed out that a softer monetary stance enhances overall economic confidence—a critical factor for high-value real estate purchases in lifestyle-driven markets like Goa. 'This shift is expected to revive interest from NRIs, domestic HNIs, and long-term investors seeking inflation-hedged, tangible assets,' he added.
Overall, industry leaders agree that the repo rate cut is a much-needed step toward boosting buyer sentiment and sustaining the real estate sector's growth momentum, especially if supported by prompt transmission of the policy change through lower lending rates.
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