Realtors relish repo rate cut by RBI

Real estate developers and experts of various hues have lauded RBI move to initiate repo rate cut as they feel that reduction in lending rate by the RBI just ahead of the festive season 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 has recently reduced the short-term lending rate, or repo rate, by 25 basis points to 6 percent at its third bimonthly policy review. According to Vineet Relia, Managing Director, SARE Homes 25 bps reduction in the repo rate will go hand in hand with favorable government measures like RERA and GST which will boost housing demand benefiting both developers and buyers. Echoing his viewpoint, Abhimanyu Londhe, CEO, SMC IM+ Realty Fund says, "This should also give the required boost to the Realty sector, especially in the affordable housing market," said. However Shishir Baijal, Chairman & Managing Director, Knight Frank India, said, "Considering multiple newer reforms in force, a good monsoon in progress, benign inflation numbers, favourable global environment and the overall uptick in industry sentiments, a healthier lending rate could have provided the much needed thrust to fuel India‘s growth story."