Repo Rate Cut Urged by Realtors for Festive Housing Boost

Realtors associations CREDAI and NAREDCO are urging the RBI to reduce repo rates during the festival season to boost housing sales. Previously, rate cuts helped maintain strong demand for residential properties. They anticipate a rate cut could further stimulate property purchases, particularly in affordable and mid-income segments.

Real estate industry bodies, CREDAI and NAREDCO, have called on the Reserve Bank of India (RBI) to lower the repo rate to enhance housing sales during the festival season, emphasizing that past cuts have sustained the demand for residential properties.

Following three consecutive interest rate cuts, the RBI decided to maintain the policy rate at 5.5% and adopted a neutral stance, citing uncertainties over international trade tariffs.

CREDAI National President Shekhar Patel described the RBI's decision as a balanced approach, aiming to shield the economy from global uncertainties and evolving trade agreements, while G Hari Babu of NAREDCO urged further rate reductions to stimulate housing market sales.

(With inputs from agencies.)