by Mr.
Shobhit Agarwal, Jones Lang LaSalle India.
As India’s GDP is
poised for its slowest growth in over a decade, the Reserve Bank of India (RBI)
has revised their monetary policy. The RBI has further lowered the REPO rate an
additional 25 basis points (0.25%) to 7.5%.
The revision in the
REPO rate will positively impact the sentiments surrounding the real estate
market. Banks will now be able to offer loans at more attractive rates. Cheaper
loans for home buyers will prompt a renewed interest in residential property
purchase from end users and investors. Banks may revise the base rate, which
would benefit old home loan borrowers who are currently paying much higher
interest rates than new borrowers would. We feel that this would be an
important move by banks and help them contain client attrition.
 |
| Mr. Shobhit Agarwal, JLL India |
The cost of funding
for real estate developers should also reduce marginally. Any kind of relief to
developers is important at this stage, since they have been burdened with
ever-increasing development and borrowing costs since last two years while at
the same time being under pressure to keep sale costs rational.
Overall, this move
definitely indicates a positive direction for the economy in general and
therefore also for the real estate sector, whose performance is directly wired
into the country's basic economic fundamentals.
About the Author..!
Mr. Shobhit Agarwal
is Managing Director (Capital Markets) Jones Lang LaSalle India
+91 22 6620 7575 |
| shobhit.agarwal@ap.jll.com |
For Media Contact..!
.jpg) |
| Mr. Arun Chitnis |
Mr. Arun Chitnis
Assistant Vice
President, Marketing
Jones Lang LaSalle
India , Level 6, Amar Avinash Corporate Plaza
Bund Garden Road,
Pune - 411 001.
Tel: 020- 4019 6100
Fax: 020 - 4019 6101
Mob: +91 93227 38464
Website:
www.joneslanglasalle.co.in
Blog:
www.joneslanglasalleblog.com/realestatecompass
Email:
arun@chitnis.com
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