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Times of Oman
20 hours ago
- Business
- Times of Oman
Industry leaders hail RBI's rate cut as catalyst for further boosting housing demand and homebuyer sentiment
New Delhi: The Reserve Bank of India's Monetary Policy Committee (MPC) has taken a decisive step to revive economic momentum by slashing the repo rate by 50 basis points, bringing it down to 5.5%, while also reducing the Cash Reserve Ratio (CRR) by 100 bps. These moves, combined with a revised CPI inflation outlook of 3.7% and a projected real GDP growth of 6.5% for FY26, reflect a front-loaded approach to accelerate growth and consumer confidence. Responding to the announcement, CREDAI-MCHI, the apex body of real estate developers in the Mumbai Metropolitan Region, Gera Developments and Star Housing Finance Limited welcomed the RBI's bold and growth-oriented stance, highlighting its strong potential to unlock housing demand, especially in the affordable and mid-income segments. Mr. Domnic Romell, President, CREDAI-MCHI said: "This dual action of reducing both the repo rate and CRR sends a clear signal--liquidity infusion and affordability are a priority. Lower interest rates on home loans will make homeownership more accessible to thousands of first-time buyers across MMR and beyond. This move can energize end-user sentiment, improve project viability, and bring housing within reach for many." Mr. Dhaval Ajmera, Secretary, CREDAI-MCHI added: "We urge banks and lending institutions to swiftly transmit the benefit of the rate cut to consumers. The current economic environment--low inflation, improved liquidity, and steady demand--creates a strong foundation for a real estate-led recovery. This is the ideal time for aspiring homebuyers to take the leap." CREDAI-MCHI also emphasized that the CRR cut will support NBFCs and banks in extending more credit to developers, particularly those operating in emerging growth corridors of MMR such as Panvel, Dombivli, Vasai-Virar, and Kalyan, where affordable housing remains the driving force. The organization reaffirmed its commitment to working collaboratively with stakeholders to ensure the benefits of this monetary easing are passed on efficiently and transparently, accelerating India's journey toward inclusive housing and sustainable urban growth. Mr. Rohit Gera, Managing Director Gera Developments, highlighted: "The RBI's decision today to cut the repo rate for the third time in a row comes as no surprise, given the strong macro indicators retail inflation easing to 3% levels, solid GDP momentum with a 6.5% growth target, and ample durable liquidity already pumped into the system. This cumulative 100 bps repo rate reduction in 2025 is now complemented by a sharp 100 bps cut in the CRR from 4% to 3% which alone injects significant liquidity and lowers banks' cost of funds. Together, these measures are designed to accelerate monetary policy transmission and bring down lending rates across the board. This reflects the central bank's aim to bolster domestic economic growth and shared prosperity amid global uncertainties. For the real estate sector, this move could be a catalyst: lower borrowing costs will translate into reduced EMIs and improved homebuyer sentiment. Hopefully, banks actively and rapidly pass on the cut to home buyers. The policy stance clearly aims to revive private investment and consumption." Mr. Kalpesh Dave, Director & CEO, Star Housing Finance Limited mentioned: "The RBI's decision to reduce the repo rate by 50 basis points is a welcome move. This should translate into lower EMIs for home loan borrowers. Disposable income should increase and thereby scope for increased spending. Concurrently, it lowers the borrowing costs for HFCs and NBFCs. We anticipate a thrust in retail credit off-take, particularly in home financing, as affordability improves. This is a positive step that should stimulate consumer spending and boost the housing sector. While celebrating this growth impetus, we acknowledge that vigilant inflation monitoring remains crucial going forward to sustain these benefits."
NDTV
2 days ago
- Business
- NDTV
How Much Will Home Loan EMI Drop After RBI's Repo Rate Cut
New Delhi: If you have a home loan, your EMI is set to reduce by over Rs 1,500 a month thanks to the Reserve Bank of India's latest move. With the central bank cutting the repo rate by 50 basis points -- from 6 per cent to 5.5 per cent -- banks are expected to lower interest rates on loans. For a Rs 50 lakh home loan over 20 years, this could mean monthly savings of Rs 1,569 and annual savings of nearly Rs 19,000, offering much-needed relief to borrowers amid high living costs. The repo rate is the interest rate at which the RBI lends money to commercial banks. A reduction in this rate makes borrowing cheaper for banks, which in turn allows them to offer loans to customers at lower interest rates. This directly impacts borrowers, especially those with home loans linked to repo-based lending rates (RBLR). Let's break this down with a practical example. Suppose you have a home loan of Rs 50 lakh at an interest rate of 8.5 per cent for a tenure of 20 years. Your monthly EMI in this case would be around Rs 43,391. Now, after the 50 basis points cut in the repo rate, if the bank reduces your interest rate to 8 per cent, your new EMI would come down to approximately Rs 41,822. Gaurav Gupta, Secretary of CREDAI (Confederation of Real Estate Developers' Associations of India), welcomed the RBI's monetary decision, saying that the rate cut will help reduce borrowing costs for home buyers. Beyond just lowering monthly payments, it will improve housing affordability across the country. He further added that a drop in interest rates not only benefits individual buyers but also boosts overall sentiment in the real estate sector, which positively impacts multiple industries connected to it. Importantly, it's not just home loans that will get cheaper -- personal loans, auto loans, and other types of retail borrowing will also see reduced EMIs as a result of lower interest rates. (Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
Time of India
2 days ago
- Business
- Time of India
Reforestation key in achieving net zero targets: Experts
Ahmedabad: The rapid growth of the Indian economy necessitates a balanced approach towards carbon emissions through enhanced green coverage and reforestation initiatives, according to specialists at the Green Gujarat Summit 2025. The summit, held on Friday, was jointly coordinated by the Confederation of Indian Industry (CII), Indian Green Building Council (IGBC), and Urban Development and Housing Department, Govt of Gujarat. CREDAI's national president, Shekhar Patel, emphasised the importance of promoting green building and net zero concepts amongst the public. He stated, "We need to take the green building and net zero movement to the people. India aims to become a developed nation by 2047, and growth will be faster, so there is a need to bring balance, and we can achieve it by increasing green cover. Reforestation will be key to achieving carbon neutrality, and at CREDAI, we have launched a mission to reforest 1 lakh acres in five years. We are going to nurture five crore trees." IGBC Ahmedabad's co-chairman, Taral Shah, highlighted the business advantages of green buildings, noting their popularity among multinational companies. "The state govt also started offering incentives to green buildings, which will encourage more developers to go for it. Green building construction cost is now just around 5% higher compared to normal buildings, but it helps save electricity cost in a big way," Shah added. Get the latest lifestyle updates on Times of India, along with Eid wishes , messages , and quotes !
Time of India
3 days ago
- Business
- Time of India
Realtors' bodies Credai, Naredco expect at least 25 bps cut in repo rate to boost housing demand
Realtors' apex bodies CREDAI and Naredco expect at least 25 basis points reduction in repo rate by the RBI on Friday and said it will help a lot in increasing demand for residential properties. The RBI's rate-setting panel started its three-day brainstorming on monetary policy on Wednesday, and Governor Sanjay Malhotra will announce the decision on the key benchmark lending rate on Friday morning. "We are expecting 50 basis point reduction in repo rate. This will boost housing demand to a great extent," CREDAI National President Shekhar Patel told PTI. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Experts Shocked At This New Hearing Aid Smartek Learn More Undo He said there should be at least 25 basis points cut. "Housing demand in the last three months has been a bit slow. So, the rate cut will help immensely in improving the sales," Patel said. Live Events The RBI reduced the key interest rate (repo) by 25 bps each in February and April, bringing it to 6 per cent. Naredco's National President G Hari Babu said the real estate sector always keeps a close watch on the RBI's monetary policy, as it has a significant impact on housing demand - both directly and indirectly. "In the current economic environment, where inflation is largely under control and macroeconomic indicators are showing stability, a reduction in the repo rate would be a timely and positive move. It would provide much-needed relief to both homebuyers and developers by lowering borrowing costs and easing liquidity," he said. The Naredco President noted that real estate is a vital driver of the economy, with linkages to over 200 sectors from cement and steel to furniture and furnishings. "Therefore, a cut in the repo rate will not only boost housing demand but also spur overall economic growth and generate large-scale employment," said Hari Babu. According to an assessment by the RBI, in response to the 50-basis points cut in the repo rate since February 2025, most of the banks have reduced their repo-linked external benchmark-based lending rates (EBLRs) and marginal cost of funds-based lending rate (MCLR). Housing loan outstanding has increased to Rs 30 lakh crore as on April 18, 2025, from Rs 27.41 lakh crore year-on-year, according to the latest RBI data. On expectations from monetary policy, Sterling Developers CMD Ramani Sastri said the real estate sector is hopeful for a further rate cut as it would be highly encouraging for homebuyers and developers alike. Dhruv Agarwala, Group CEO of said there is a strong case for 25 basis points rate cut. "...For the housing sector, lower home loan rates would enhance affordability and sustain demand- particularly critical at a time when we are witnessing early signs of demand tapering and developers pulling back from the affordable housing segment due to rising input costs," Agarwala said. Bengaluru-based realty firm Sanjeevini Group Chairman and Founder, Umesh Gowda H A said home loan interest rates have dropped below 8 per cent in some banks, which is a good sign of timely transmission of two repo rate cuts by the RBI. "We expect another 25 bps cut in repo rate and hope that more banks quickly pass on the benefit to borrowers," he said. This will provide a much-needed relief to not just existing homebuyers in the form of reduced EMI but also those who have been postponing their decision to buy a home, Gowda said. Ashok Kapur, Chairman of Krishna Group and Krisumi Corporation, said, "The RBI had adopted an accommodative stance in its previous policy review meeting, and it is expected that we will again see a cut, giving further relief to the various sectors of the economy." Garvit Tiwari, Director & Co-Founder of InfraMantra, said a cut in interest rate will give a spur to housing demand and encourage new entrants to make real estate purchases. Realty firm Sikka Group MD Harvinder Sikka expects a rate cut to boost consumer sentiment.
The Hindu
24-05-2025
- Business
- The Hindu
NRI home buying surges, buoyed by roots and solid returns
From serene hill stations to the bustling cities and opulent locales of metro areas, Non-Resident Indians (NRIs) are increasingly acquiring properties, not only as a strategic investment but also as a means of staying connected with their cultural roots. Developers are getting enquiries from the United States, United Kingdom, Singapore, the Middle East, and even Australia. NRIs accounted for approximately 15%–25% of investments in newly launched residential projects across India's top seven cities — Delhi-NCR, Mumbai Metropolitan Region, Bengaluru, Pune, Hyderabad, Chennai, and Kolkata — in 2024, Shekhar G. Patel, president of CREDAI, points out. Women in the buyer's seat 'Cities such as Delhi-NCR, Mumbai, Bengaluru, Hyderabad, and Chennai continue to attract interest, backed by infrastructure growth and favourable policy frameworks. At the same time, Tier 2 and 3 cities like Ahmedabad, Kochi, Indore, and Lucknow, are witnessing growing traction among NRIs due to better affordability and rapid urbanisation,' he adds. 'With the Indian economy projected to grow at 6.5% in FY 2025–26, the overall environment remains favourable for long-term investment.'SHALIN RAINA Managing director, residential services, Cushman & Wakefield Over the past two years, another interesting trend that has emerged in India's real estate sector is the rise in the number of NRI women who are stepping into the role of independent property buyers. As women are begining to earn more abroad, many are investing in properties back home and taking a keen interest in keeping the next generation closely connected to their families in India. Traditionally, real estate investments, among NRIs, have been dominated by men, often in joint partnership with spouses. The profile of NRI home buyers has also changed. Earlier, the market was dominated by techies, salaried professionals, and established business entrepreneurs. Now this segment is witnessing a shift with younger buyers, in the age group of 35 to 45, becoming a major force in the market. They are spending anywhere between ₹3 crore and ₹5 crore on homes. Meanwhile, older NRIs, particularly those above the age of 40, are gravitating toward luxury homes with budgets starting at ₹5 crore. Some buyers are even willing to invest upwards of ₹25 crore on premium properties. In 2024, NRIs accounted for 12% of purchases for Bengaluru-based Brigade Group. This increased to 16% in 2025, fuelled by a preference for modern homes featuring well-designed architecture, luxury amenities, and proximity to workspaces. For example, the firm's Gateway project in Hyderabad saw 35% of its buyers from the NRI category, reflecting the demand for high-end living spaces. 'NRIs tend to favour homes where the layouts and architectural styles reflect those in the West, Dubai, or Singapore. They show a preference for contemporary aesthetics and brand-conscious selections,' says Viswa Prathap Desu, COO Residential, Brigade Group. 'At Brigade, we have noticed particular interest in the South Indian cities of Hyderabad, Bengaluru, Chennai, and Mysuru,' he adds. Meanwhile, the Hiranandani Group has also experienced a notable increase in demand from NRI homebuyers for its township projects located in Powai, Thane and Panvel within the Mumbai Metropolitan Region, and Oragadam in Chennai. 'Cities such as Delhi-NCR, Mumbai, Bengaluru, Hyderabad, and Chennai continue to attract interest, backed by infrastructure growth and favourable policy frameworks'SHEKHAR G. PATELL President of CREDAI Additionally, more affordable investment options, such as plotted developments, have gained popularity among NRI homebuyers at the Oragadam project in Chennai. Niranjan Hiranandani, chairman and managing director of Hiranandani Communities, says, 'For NRI buyers, the preferred investment range for apartments in the Panvel project is between ₹1 crore and ₹2 crore, while in Powai, the ticket size starts at ₹3 crore.' Hiranandani adds that NRIs tend to prefer branded projects with integrated living and holistic amenities, self-sustaining ecosystems, high rentals, professional concierge services to maintain homes, assured rentals by developers, and better ROIs to shortlist their investments. According to statistics shared by DLF Home Developers, during the financial year (FY) 2023,the firmgenerated$240 million in sales from NRI investors, representing approximately 14% of total sales. In FY 2024, NRI contributions to DLF's residential segment amounted to around$408 thismomentum continued in FY 2025, with NRI sales reaching approximately$421 million. Aakash Ohri, jointmanaging director and chief business officer, DLF Home Developers Ltd,says: 'Recent project launches further highlight this traction — NRI buyers accounted for 25% of sales in DLF Privana South (around$216.1 million), 27.8% in DLF Privana West (approximately$180 million), and for The Dahlias, around 14% so far. 'NRIs tend to favour homes designed with layouts and architectural styles that reect residential styles of the West, Dubai, or Singapore. They show a preference for contemporary aesthetics and brand-conscious selections'VISWA PRATHAP DESUCOO Residential, Brigade Group Gurugram emerging as winner Looking at the increasing demand for homes from the NRI fraternity, DLF Home Developers Ltdis now preparing to enter markets like Mumbai and Goa. Ohrinotes that among the six major metropolitan cities, at least four are currently witnessing record-high demand from NRIs, particularly in the luxury segment. 'Notably, Gurugram has emerged as the youngest city with the highest demand and price realisations to date.'He adds, 'The NCR region now boasts a high concentration of wealth from ultra-high-net-worth individuals (UHNIs), business families, industrialists, and NRIs.' Ravi Aggarwal, co-founderandmanaging director, Signature Global (India) Ltd.,has another observation. 'According to recent World Bank findings, India received 14.3%of all global remittances in 2024 — the highest ever for any country in a single year. Nearly 7% of these remittances are invested in land, property, and securities. This growing interest in Indian real estate is driven by increasing confidence in the country's economy and strong government backing for infrastructure development and the sector's immense growth potential in leading cities,' he says. For Signature Global, Southern Peripheral Road and Dwarka Expressway in Gurugram have witnessed significant interest from NRIs. 'Our premium projects, Titanium SPR in Sector 71 and Deluxe DXP in Sector 37D, Gurugram, are strategically located in these two key corridors,' he says. Resilience during volatility With its potential for stable returns and capital appreciation, property investment offers a sense of security and financial growth, making it an attractive option for NRIs seeking to safeguard and grow their wealth in times of volatility. 'With the Indian economy projected to grow at 6.5% in FY 2025–26, the overall environment remains favourable for long-term investments. Continued implementation of RERA framework has helped maintain transparency and accountability, offering NRIs added confidence in project delivery,' says Shalin Raina, managing director, residential services, Cushman & Wakefield. He further explains that another key driver of this momentum is the notable price appreciation — property values in key urban markets have risen by 20-30% over the past three years, making real estate a high-return asset. 'In addition to this, the flexible payment plans offered by developers, especially in northern India, make the investment more attractive,' he says. According to an NRI who has finalised a house in Mumbai, the depreciation of the rupee helped him make his choice. 'My wife and I live in the U.S., but we frequently travel to India for work. Eventually, we decided to buy a house. The home we bought was valued at ₹7 crore. We have also planned to retire in India. This helped me diversify my portfolio — and I felt it would fetch me a good return on investment,' he says.
