Repo Rate Cut Spurs Housing Demand Surge in Kolkata

The Reserve Bank of India has reduced the repo rate by 50 basis points, spurring a predicted 5-10% rise in housing demand, particularly in affordable housing in Kolkata. Experts expect improved liquidity and lower borrowing costs to drive growth across all market segments, marking renewed confidence in the economy.

The Reserve Bank of India's recent decision to slash the repo rate by 50 basis points to 5.5% is expected to significantly boost housing demand in Kolkata. This reduction, coupled with a one percentage point cut in the cash reserve ratio, is seen as a major catalyst for the city's affordable housing market segment.

Experts, including Sushil Mohta, President of CREDAI West Bengal, predict that the lower interest rates will spur a 5 to 10 per cent increase in home loan activity in the coming months. The move is projected to enhance liquidity and accessibility for both homebuyers and developers.

Industry insiders believe that this policy change indicates broader economic confidence and forecasts greater transaction volumes in Kolkata's real estate sector, promising growth in construction activities and employment. The city's conservative pricing is expected to support sustained buyer interest and participation.

(With inputs from agencies.)