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Prime News delivers timely, accurate news and insights on global events, politics, business, and technology
After a long pause, the Monetary Policy Committee (MPC) of the Bank of the India Reserve (RBI) decides to reduce the repo rate by 25 basic points, which provides a long -awaited relief to the country’s real estate agents. As the MPC announced that the Repo rate was reduced to 6.25%, after keeping it at 6.5% for several quarters, the interested parties of the real estate sector cheered the movement, anticipating an increase in the demand for residential homes in the coming months.
According to Venkatesh Gopalakrishnan, office of the promoter of the Director Group, MD – Shapoorji Pallonji Real Estate, the measure will give a “significant impulse” to the real estate sector, particularly for affordable and medium housing.
“We praise the RBI for its proactive decision to reduce the repo rate, marking an essential movement after almost five years. The lower costs of loans will further improve the affordability of the mortgage loan, bringing the dream of housing property for many aspiring buyers, “says GoPalakrishnan, and adds that” it is likely that the movement regenerates investments in the real estate sector, providing the very necessary motivation to maintain its growth. We are optimistic that this rate cut will positively influence the feeling of the market, strengthen the buyer’s confidence and catalyze long -term growth in all segments of the industry. ”
Pradeep Aggarwal, founder and president of Signature Global (India), said that the RBI movement indicates a change in professional growth aimed at maintaining the economic impulse of India, since the movement will improve liquidity, encourage investments and stimulate demand In the key sectors.
“For real estate, a rate cut after such a long period is a significant impulse. The lower indebtedness costs will improve the affordability of the home, strengthening the feeling of the buyer, particularly in the medium income housing and premium segments. Historically, reduced interest rates have triggered an increase in the demand for housing, benefiting both housing buyers and developers. In addition, improved credit will support developers to obtain funds for the execution of the project, ensuring constant supply and timely deliveries, ”says Aggarwal.
The real estate agent Niranjan Hiranandani, president of Naredco, feels that this strategic and long -awaited movement has been carried out “at a crucial moment.”
“He assures us that despite external geopolitical uncertainties, our national economic climate maintains efficient markets and solid demand. Combined with the tax benefits announced in the FY26 budget for the middle class, this policy change will increase sales speed, ”he said.
According to DHRUV AGANWALA, CEO of the Housing.com group and Proptiger.com, the reduction in the key policy rate, the first in five years, will reduce the interest rates of mortgage loans, benefiting both the possible buyers and the borrowers existing.
“The tariff cut will play a crucial role in improving the affordability of housing in the most populous country in the world, complementing the measures announced in the recently presented budget of the 2025 Union. In addition, the cut of the repo rate, Together with the reduction previously announced in the CRR, Will, Will, Will.
It is likely that experts in the sector such as Vimal Swim, Chief of Research of Colliers India, the cuts of fees along with the recent budget ads related to the creation of the Urban Challenge Fund and the fiscal reliefs under the new regime, it is likely that it is likely that it is likely stimulate urban growth and improve internal consumption. . A higher income available and the reduction of financing costs is to benefit housing buyers and developers equally.
“In addition, the recent assignment of RS 15,000 million rupees for the Swamih II fund probably accelerates the completion of stressed projects, increasing liquidity and stimulating the feelings of purchase at home. In general, obvious tail winds should increase the demand for real estate in asset classes in the next quarters, ”says Swim.