New Delhi, April 30, 2019:
Manoj Gaur, MD, Gaurs Group
“The benchmark lending rate cut by 25 bps to 6 percent is a positive move for real estate sector. This move will surely benefit banks which eventually can ease Lending in the sector. The second consecutive reduction shows positive signs which can surely enhance the demand for housing, marginally.
Though the last cut wasn’t passed on to the consumers so we would have to wait and watch whether this time the consumers get the benefits or not”
Mr. Prakash Pandey, Director, Fairwealth Group
As Expected, RBI cuts rates by 25bps, and keeping the stance neutral. Looking at the rising crude oil prices, upcoming general elections and global ‘trade tension’ this 25 bps rate cut is a prudent to step towards pushing overall economic growth. This will definitely help NBFCs and small finance banks like Equitas, Ujjivan Financial Services and L&T Finance. we are hoping another 25 bps rate cut in June policy. This welcome move will help the Auto sector and Real Estate sector up to certain extent.
Amit Modi, Director- ABA Corp, President (Elect) CREDAI (Western UP)
“This is a good and much awaited development, since easing interest rate will help revive the investment cycle, especially in sectors like Real-Estate which are highly sensitive to interest rate movements. RBI’s decision of reducing its key policy rate by 25 basis points for the, second time in a row shows a softer stand towards lending. It’s good news especially for home loan borrowers with the RBI bringing down the key policy rate by 25 bps in its first bi-monthly monetary policy review of the financial year 2019-20, signalling lower interest rates. Hence we also hope that with this development, the banks will immediately pass on the cut to the home buyers, since that’s the confidence booster for the real buyer, and will finally lead to much needed investment spur in the sector, which will not only culminate in more launches in real estate sector, but more importantly timely project completions as well”.
Mr. Pradeep Aggarwal, Founder & Chairman – Signature Global India Pvt. Ltd and Chairman – ASSOCHAM National Council on Real Estate, Housing and Urban Development
The RBI policy cut rates will not only be a positive outcome for the Real Estate sector, but also for the eligible new home borrowers who can take advantage of the subsidies scheme under PMAY (Pradhan Mantri Awas Yojana). This move will be a big boost for affordable housing and help for first time home buyers also the rate cut brings fetches confidence for the market as this will make availability of more money at the banks thereby lowering the EMI burdens. And to add icing to the cake, the government has also extended the time-limit of the PMAY scheme to March 31, 2020 for middle-income group buyers.
Deepak Kapoor, Director, Gulshan Homz & Former, President, CREDAI Western UP
“With RBI reducing the repo rate back to back this financial year, shows a softer stand towards lending. I am sure Bank’s would surely reduce the lending rates, though marginally, which can boost the sentiments in the market. Also with the push which the government showed towards affordable segment in the budget 2019 where the income tax rebate was extended to Rs 5 lak, I am sure end users would now be more motivated, to purchase their homes, post the repo rate cut.”
Ashok Gupta, CMD, Ajnara India Limited
The 25 basis point policy rate cut is anticipated to rejuvenate the real estate market as this step will give assistance in lowering the marginal cost of fund based lending rates (MCLR) thereby bringing in more availability of money at the banks. The RBI Policy rate cut will not only benefit the developers, but also will favour the homebuyers by lowering the EMI burden.
Kushagr Ansal, Director Ansal Housing & President CFREDAI Haryana
A constructive progression for the real estate sector is counted on with the RBI policy rate cut by 25 basis points. This is surely going to boost the market as this is the second time in FY 2018-19 that the rates have been cut by 25 bps changing the reserve repo rate at 5.75%. The marginal cost of fund based lending rates is expected to be low which in turn infers the availability of more money the banks thereby benefiting both the end-users and the developers.
Rajesh Goyal, MD RG Group and VP CREDAI NCR
This is a good development, since easing interest rate will help revive health of businesses like Real-Estate which are highly sensitive to interest rate movements, but while it is indeed a step in the right direction, there is definitely more required to improve the sentiment towards investments in the country. The back to back repo rate cuts will boost the affordable and mid segment housing sales.
Vikas Bhasin, CMD, Saya Group
This is surprisingly a good development — two back to back repo rate cuts this year — and indeed a step in the right direction. It will help to ease the pressure off the market by attracting more number of buyers to invest in the real estate sector. It will accentuate the recent softness in momentum in the domestic economy.
Amit Raheja, CMD, Wealth Clinic
“A stance neutral policy by RBI is anticipated to revive the real estate sector to a great extent and also cue the banks for hiking or cutting lending rates. Not only developers, but even the end-users can also take advantage from the policy as the rate cut will minimize the marginal cost of fund based lending rates (MCLR) and make more money available in the banks thereby lowering the burden of EMI.”
Prateek Mittal, Executive Director, Sushma Group
“The second consecutive rate cut of 25 basis points by RBI in its monetary policy would provide relief to the borrowers and will provide a boost to the real estate segment. This move will certainly bring greater liquidity for the economy and is anticipated to revive the real estate sector to a great extent. The reduction in repo rate will help the borrowers of big-ticket loans like home loans which will certainly lead to the increased demand for homes”.
Kaushal Jain, MD, Arihant Group
“The repo rate cut by RBI will aspire the real estate sector to pick up their businesses in the market. It will be a constructive progression for the sector and is counted on with the RBI policy rate cut by 25 bps. This step is highly expected to rejuvenate the real estate market as it will give assistance in taking down the marginal cost of fund based lending rates (MCLR) thereby bringing in more availability of money at the banks.”
Corporate Comm India(CCI Newswire)