Real estate experts said that the residential market across India has revived after RBI cut its major rates. After the RBI rate cut; the home loans have become cheaper and this has improved the sentiments of home buyers.
RBI rate- cut have highly affected the sentiments of home buyers. With the RBI rate cut, the home loans have become cheaper. This has increased the housing demand that helped residential market to revive.
Praising the RBI rate cut, real estate developers and consultants have said that the act will improve the housing demand. As a result the residential market will see a growth. According to them, the rate cut will boost foreign investment as well.
Last week; in a much awaited decision enabling the subsidiary banks to offer loans at lower interest rates, RBI had cut short its key interest rates. The Central Bank lowered the repo rate by 0.25% and cash reserve ratio by 4%.
The current repo rate is 7.75%. The revised CRR will leave around Rs.18000 Cr with the subsidiary banks, enabling them to offer bigger and more loans to the borrowers.
RBI move is expected to reduce the home loan interests and to boost the residential market. The reduced interest rates will benefit the builders as they have also taken loans from the banks.
Speaking about the RBI move, Unitech MD Mr. Sanjay Chandra said that the move is really a positive move. He added that the move would certainly improve the investment along with the housing demand. Along with the RBI move the government efforts also will boost the real estate sector in 2013.
By reducing the rates, RBI has shown its commitment to improve liquidity in a cash-strapped economy, reported Jones Lang LaSalle (JLL) India, the Global property consultant. According to JLL India’s MD (capital markets) Mr. Shobhit Agarwal the RBI Move is a key that will boost real estate market.
Mr. Agarwal opined that the new policy of RBI will invite more investment; allowing an easy liquidity flow. He seemed highly optimistic over the revival of residential market with the new RBI policy.