According to realty experts the residential market across India has revived after RBI cut its rates recently. In fact the RBI’s rate cut has lowered the interest rates for home loans and other loans.
Reducing the interest rates for home loans and other loans, RBI recently cut its key rates. The move of the RBI is believed to boost the sale of housing units as the buyers will be able to take loans at lower interest rates. In fact this will revive the residential market across India.
Home loans and other loans have become cheaper after RBI cut its key rates finally. This move has become a boost that has improved the home buyers’ sentiments. However reports show that there has been a steady increase in the demand for housing sales. If the situation continues the residential market will revive itself from the sluggishness.
In the last week of January RBI reduced the repo rate to 7.75% from the existing 8%. Further the cash reserve ratio was also lowered by 4% leaving an additional 18000 Cr in the hands of bankers to provide as loans. These rate-cuts will; according to the experts, invite larger foreign investment as well.
The subsidiary banks will be forced to lend loans at lower interest rates to the home buyers. Besides home loans, other loans also will be cheaper. Further the subsidiary banks will be able to lend an additional amount-around Rs.18000 Cr – to the loan-takers.
Interestingly; but true to the core, real estate builders will be happier. Firstly their burden on their loans can be reduced with the reduced interests. Secondly as the demand grows they will be able to sell their projects and cut off their debts.
Mr. Shobhit Agarwal, JLL India’s MD (capital markets), said that the act of RBI will certainly have a positive impact on the residential market of India. Unitech MD Mr. Sanjay Chandra also appreciated the rate-cut as it will necessarily raise the demand for housing units.