Lower borrowing costs to make housing more affordable, stimulate realty growth

India’s real estate industry hailed the Reserve Bank of India’s decision to reduce the key interest rate by 25 basis points on Friday, saying this rate cut will have a positive impact on the overall sector, making home loans more affordable and increasing demand for housing.

“With lower interest rates, we expect to see increased sales, improved liquidity, and a reduction in the inventory of unsold homes. This, in turn, will encourage developers to launch new projects, creating new opportunities for homebuyers and investors,” said G Hari Babu, National President of NAREDCO.

“In addition, I believe that this move will have a positive impact on the affordable housing segment, which is a priority area for the government. With lower interest rates, more homebuyers will be able to afford homes, leading to increased sales and improved liquidity for developers. This, in turn, will encourage developers to launch more affordable housing projects, addressing the huge demand-supply gap in this segment,” he added.

Also Read: RBI Cuts Repo Rate by 25 bps: What should homebuyers do now?

Pradeep Aggarwal, Founder & Chairman, Signature Global (India) Ltd, said, “For real estate, a rate cut after such a long period is a significant boost. Lower borrowing costs will improve home affordability, strengthening buyer sentiment, particularly in the mid-income and premium housing segments. Historically, reduced interest rates have triggered an upswing in housing demand, benefiting both homebuyers and developers. Additionally, improved credit access will support developers in securing funding for project execution, ensuring steady supply and timely deliveries.”

With a sustained focus on affordability and sustainable development, India’s housing market is well-positioned for long-term growth.

Akash Khurana, President and CEO, Krisumi Corporation, said, “The Central Bank’s unanimous decision to cut the repo rate by 25 bps is definitely a welcome move that will enhance liquidity in the economy, making credit more accessible and boosting overall consumption. This follows the last MPC decision to reduce the Cash Reserve Ratio (CRR) by 50 basis points, which has already injected significant funds into the banking system. Lower interest rates are expected to stimulate housing demand by making home loans more affordable, strengthen market confidence, and provide much-needed momentum to the real estate sector, ultimately supporting economic growth.”

Here’s what India’s leading developers said about the RBI decision to cut the repo rate:

Rajjath Goel,

 » Read More

Related Articles

Stock Market Live Updates: Sensex, Nifty set to open higher on positive cues

Go to Live UpdatesSensex Nifty Today | Stock Market Live Updates: Early trends from Gift Nifty indicates a positive start for the markets today. Asian markets are also trading higher, with key indices in Japan and South Korea opening on a positive note. Meanwhile, Indian stock markets have reopened after a long weekend and the

How will markets open today? Fed meeting, Trump tariffs & 7 more cues to watch

After a long weekend on account of Holi, the Indian stock markets are set to resume trading today, March 17. But will the break bring fresh momentum, or will investors return to a cautious start? Early trends from Gift Nifty indicate a positive opening. From Wall Street’s performance to key economic announcements, several factors will

Stocks To Watch: From IndusInd Bank to Infosys- Here’s a list of 11 stocks in news today

After an extended break due to the Holi holiday and the weekend, the stock market is set to resume trading with plenty of action on the horizon today, March 17. With three days of global market movements, company updates, and economic cues piling up, investors will have a lot to factor in as the trading

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Stay Connected

0FansLike
0FollowersFollow
0SubscribersSubscribe
- Advertisement -

Latest Articles

Stock Market Live Updates: Sensex, Nifty set to open higher on positive cues

Go to Live UpdatesSensex Nifty Today | Stock Market Live Updates: Early trends from Gift Nifty indicates a positive start for the markets today. Asian markets are also trading higher, with key indices in Japan and South Korea opening on a positive note. Meanwhile, Indian stock markets have reopened after a long weekend and the

How will markets open today? Fed meeting, Trump tariffs & 7 more cues to watch

After a long weekend on account of Holi, the Indian stock markets are set to resume trading today, March 17. But will the break bring fresh momentum, or will investors return to a cautious start? Early trends from Gift Nifty indicate a positive opening. From Wall Street’s performance to key economic announcements, several factors will

Stocks To Watch: From IndusInd Bank to Infosys- Here’s a list of 11 stocks in news today

After an extended break due to the Holi holiday and the weekend, the stock market is set to resume trading with plenty of action on the horizon today, March 17. With three days of global market movements, company updates, and economic cues piling up, investors will have a lot to factor in as the trading

Market Outlook: Nifty at inflection point; defence stocks headed higher?

By Anand James One point at the start of last week was how strong an offensive could the bears launch. At that point, we were just coming off a sub 25 RSI level, which had historically favoured a bounce back. But such moves also held a strong chance of fizzling out quickly. This is why

Rapido plans to undercut Swiggy, Zomato duopoly

Ride-hailing platform Rapido is in advanced talks with restaurants and industry associations across four major metro cities to challenge the dominance of Swiggy and Zomato, which together command an estimated 95% market share. The move comes at a time when restaurants have been voicing growing concerns over high commission rates and potential conflicts of interest following