Housing Loan Rate Cut Will Infuse Positive Sentiments in Real Estate Market : CREDAI

Mr. Lalit Kumar Jain, Chairman, CREDAI - developer’s apex body and Chairman and Managing Director of Kumar Urban development Limited (KUL) has expressed his happiness over banks cutting the home loan rates for new customers.
This move comes a day after the Reserve Bank of India (RBI) kept the key policy rates unchanged at 7.75 % (Repo rate) and 4 % (CRR). RBI has surprised the market by leaving the key policy rates unchanged despite high inflationary pressure.
Mr. Lalit Kumar Jain, “We are pleased that major banks in India have decided to lower the housing loan interest rates to new customers. This is a positive move to boost property sales & spur industry growth. Home buyers who were earlier waiting for rates to come down will now certainly look at buying their dream homes”

Mr. Anshuman Magazine, Chairman & MD, CBRE South Asia Pvt. Ltd., has also welcomed the move from banks lowering new home loan interest rates, within a day of RBI deciding to keep repo rates unchanged.
He said, “This move is a positive signal for the economy as a whole, and the real estate sector in particular. The very fact that RBI decided to keep repo rates unchanged despite persistent inflationary conditions is indicative of the Central Bank having moved beyond merely controlling inflation, and beginning to address larger economic growth, consumerism and investments.”
The housing loan rate cuts from certain banks have occurred after nearly a year, and will augur well for investment sentiments in the market. If home loan interest rates go down further, house buyers & real estate investors - especially in the housing market - will be encouraged to make purchase decisions.

 “Going forward, the RBI may be expected to maintain stability or reduce base rates. All in all, a positive signal for the investment climate in India’s realty sector; and a likely indication of a gradual economic recovery,” he added.


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