Real estate agent Naredco is seeking a 25-30 basis point reduction in reporate in its future monetary policy to increase housing demand.
“The realty sector demonstrates robust growth and positive sentiment, but stable or slightly reduced reporates further strengthen the trajectory. A reduction of 25-30 basis points is supported by the RBI. It could show a stance, not only energizing the real estate market, but also benefiting alliance industries such as construction, cement and steel,” said G Halibab, president of Naredco.
This will also serve as a psychological and financial boost for developers and home buyers, encouraging investments and encouraging mortgages to make them more affordable, he added.
“The affordable housing segment, especially in Tier-2 and three cities, is to be highly captured, in line with the government’s vision of inclusive growth and urban development,” says Hari Babu.
Rate reductions will improve liquidity, allowing developers to promote ongoing projects and plan new ventures.
“Overall, reporate reductions will serve as a catalyst for the sector, amplify its contribution to the economy and promote sustainable growth across the region,” Halibab said.
Knight Frank CMD Sisil Baijal said the rate reduction would be beneficial for the real estate sector. He said this is because it makes borrowing more affordable for home buyers and restores consumer sentiment, particularly in the low- and middle-income segments.
“It could also increase the liquidity of the banking system, making it easier for developers to access project funding,” he added.
Anantharam Varayur, co-founder of Manasum Senior Living, was hoping that the Reserve Bank of India (RBI) would maintain or reduce key interest rates during the monetary policy announcement.
Angad Bedi, CMD at construction company BCD Group, said, “RBI’s MPC ideally complements the finance minister’s efforts to promote consumption-driven growth by lowering interest rates and bringing cheers to end consumers. It should be.”
The real estate sector has witnessed impressive demand for premium and luxury properties, but with the exception of affordable housing, he added, it will benefit greatly from interest rate cuts.
“I think it’s an ideal time for the Reserve Bank of India (RBI) to cut interest rates due to flooding of economic growth. This is the latest budget,” said Ankur Jalan, CEO of AIF Golden Growth Fund (GGF). With the announcement, the income tax exemption up to Rs 12 lakh will play an important role in stimulating consumption and promoting economic activity in all sectors, including real estate.”
On February 5, RBI began deliberations on financial policy amid expectations of a 25 basis rate cut, as inflation remains within the central bank’s comfort zone despite sliding rupee continuing to be a concern. I did.
