Vishal Raheja, Founder & MD,InvestoXpert.com.
We appreciate RBI’s decision to cut the repo rate by 25 basis points to 6.25% is a much-needed stimulus for the economy, particularly the real estate sector, which thrives on affordable credit. This is the first rate cut in five years, signaling a shift in policy to support growth, especially after GDP growth projections for FY25 were revised to 6.4%.
Lower borrowing costs will enhance homebuyer sentiment, making housing loans more affordable and boosting residential sales. The tax relief announced in the Budget, coupled with this rate cut, will increase disposable income and potentially revive demand in the housing sector.
Earlier, a repo rate cut has led to a reduction in home loan interest rates, encouraging fence-sitters to make purchase decisions. Given that real estate contributes nearly 7% to India’s GDP and is projected to reach 13% by 2030, this move could provide the momentum needed for sustained growth in the sector.
Sunil Sisodiya, Founder, Geetanjali Homestate
The RBI’s decision to cut the repo rate by 25 basis points is a welcome move, particularly for the real estate sector. This rate cut, coupled with recent tax relief measures, is expected to boost homebuyer sentiment by making home loans more affordable. The timing is crucial, as it aligns with the government’s broader efforts to stimulate economic growth and revive consumer demand.
Lower interest rates have historically encouraged fence-sitters to take decisive steps towards property investments, driving demand across residential and commercial segments. With the inflation outlook stable and economic growth projected at 6.7%, we anticipate increased liquidity in the market, making real estate an even more attractive asset class.
We see this as a significant opportunity for first-time buyers and investors looking to capitalize on a more favorable financial environment.
