Realty Renaissance: Anticipated RBI Rate Cut Sparks Optimism

Real estate leaders from CREDAI and Naredco are optimistic about RBI's possible 25 basis points repo rate cut, expecting it to significantly boost residential property demand. With the rate currently at 6%, a further cut could ease borrowing costs, enhance affordability for buyers, and boost economic growth.

Industry groups CREDAI and Naredco are closely watching the Reserve Bank of India's monetary policy decision-making process. They predict that a 25 basis points reduction in the repo rate on Friday will stimulate the demand for residential real estate.

The meeting started on Wednesday, with a decision expected to be announced by Governor Sanjay Malhotra. The real estate sector sees this potential rate cut as crucial, as the RBI previously reduced it twice this year, leading to a significant increase in housing loans outstanding.

Experts in the industry, including leaders from Sterling Developers, Housing.com, and various realty firms, are hopeful that such a move will lower borrowing costs, boost consumer motivation, and catalyze economic growth, which could provide relief to homebuyers and developers alike.

(With inputs from agencies.)