Decisions of the Reserve Bank of India’s bi -monthly medial review meeting have come. This time the repo rate has been cut by 25 BPA. Now the repo rate is 6.25 percent. The loan EMI is likely to be cheaper after the repo rate cut. It is believed that this decision of ABI MPC will benefit real estate.
On the decision of the MPC meeting, Atul Monga, Co-Founder and CEO, Basic Home Lone said that the Monetary Polis Committee (MPC) has decided to reduce the policy rate by 25 basis points to 6.25 per cent, which will make the loan cheaper and Economic development will gain momentum. This will benefit new and existing consumers from low interest rates, who have taken a loan at floating rate. However, there will be no effect on those taking loans at fixed rates. Banks and housing finance companies may take some time to make these benefits accessible to consumers, it will depend on their policy and rate cycle.
Real estate will benefit
Atul Monga further said that this decision will speed up the real estate sector, people will be interested in buying houses and investing in property. From the perspective of economic growth, it is expected that the rate is expected to boost investment and it is expected that GDP will also increase by 6.7 percent during the financial year 25-26. However, the increase of GDP also depends on economic conditions, inflation and domestic demand.
The Center is focusing on bank i.e. RBI inflation. It is expected that inflation in the current financial year 25 can be 4.8 percent. Demand for houses will increase due to reduced repo rate. This decision of RBI has been taken to control inflation and keep money flow balanced.
Boost for homebuair and developers
Welcoming the RBI’s decision, SPJ Group Chairman Pankaj Jain said, “RBI’s decision to reduce the repo rate to 6.25% to 6.25% is a welcome step for the real estate sector. Low lending cost homebuilders and The developers will provide equal relief, which will increase the demand for housing, especially in mid and affordable areas.
Emphasizing the importance of a constant liberal stance, Chief Operating Officer of Unity Group, Kunal Behrani said that this rate cuts indicate pro -development stance by RBI and comes at an important time when the real estate industry comes at a significant speed Is. Low home loan interest rates will encourage more buyers to invest in property, while developers will benefit from low financing costs for ongoing and new projects. We hope that this is the beginning of a more generous monetary cycle that supports long -term industry development.
Hope to improve investment and market perception
Mohit Mittal, Chief Executive Officer of MORES, shared his opinion from the investment advisor’s perspective, saying, “For the first time in about five years, the cut in policy rate reflects a change in the direction of supporting economic growth amidst global uncertainties. For real estate investors, this step makes financing more attractive and can cause renewed interest in residential and commercial assets.
Underlining the importance of Quick Transmission, KDMG Group Director-cells and Marketing Vivek Sinha said that the 25 BPS rate cut by RBI is a step in the right direction for the real estate sector. With the cost of borrowing the cost, we expect an increase in homebuir inquiry and improving market perception.