Experts eye spurt in housing demand as RBI cuts repo rate

Bhubaneswar: The Reserve Bank of India’s (RBI) recent repo rate cut by 25 basis points has brought cheers to the real estate sector, as the announcement, according to experts, is set to benefit not just the homebuyers but developers as well.

This is the fourth consecutive time that the RBI reduced the repo rate, bringing it to the present 5.25%. This will ease the home loan process by lowering the interest rates and benefit stakeholders, especially in Tier-II cities like Bhubaneswar. “With the decision, borrowing will likely become affordable for prospective homebuyers. Lower borrowing costs, coupled with GST reforms, will create a conducive environment for both buyers and developers,” real estate expert Mayadhar Dash said.

Jitender Yadav, director of a leading real estate firm, said that the RBI’s decision to reduce the repo rate to 5.25% is a catalyst for renewed enthusiasm in the real estate sector.

“Lower borrowing costs will make home loans more affordable, which will increase the demand from homebuyers. This will also help developers to speed up project launches and improve completion timelines,” he said.

Buyers are equally excited about the decision.

“I don't know so many calculations, but if the interest rate is lowered, it will definitely help middle-class people like us. We can now dream of a house,” Nivedita Jena, a prospective homebuyer, said.