Real estate companies welcomed RBI’s decision to cut interest rate by 0.50 per cent and they expect a boom in the sector. They have urged the banks to pass on the benefit to the home loan borrowers as it can revive the sales in the festive season.
“There were huge expectations by the sector from RBI this time and finally it has been fulfilled. We were looking ahead for rate cut which could boost the real estate sector in a big way. With festive season around the corner, the timing of the RBI to reduce the rate could not have been better,”said Gaursons India’s MD Manoj Gaur
Gaur is hoping that the banks will also do the same by reducing the rates on loans, so the borrowers can avail the benefit. He also feels that as the festive season is approaching, the rate cut will definitely encourage the buyers which will eventually give a boost to the realty sector.
Realising the overall economic situation and challenges, National Real Estate Development Council (NAREDCO) Chairman Navin Raheja welcomed the rate cut. He stated that the rate cut was overdue in the environment of lower inflation and poor domestic demand.
The decision of RBI to cut the interest rates was overdue in the environment of lower inflation and poor domestic demand. The home buyers were upbeat but in a wait and watch mode due to high prevailing interest rates,” said Raheja.
