Manoj Gaur, MD, Gaurs Group and Vice President, CREDAI National

“With RBI reducing the repo rate after keeping it unchanged since last two monetary policy reviews, it 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 5 lac, I am sure end users would now be more motivated, to purchase their homes, post the repo rate cut.”

Mr. Pradeep Aggarwal, Co-Founder & Chairman, Signature Global and Chairman, National Council on Affordable Housing, ASSOCHAM

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.

Amit Raheja, MD, Wealth Clinic

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.

Deepak Kapoor, Director, Gulshan Homz & Former, President, CREDAI Western UP

This is a surprisingly good development and indeed a step in the right direction. The repo rate that was left unchanged since October 2018 has now been cut by 25 bps, thus giving a sigh of relief to the real estate sector.  It will help to ease the pressure off the market by attracting more number of buyers to invest in the real estate sector.

Gaurav Gupta, President, CREDAI Ghaziabad and Director, SG Estates

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 first time in FY 2018-19 that the rates have been cut by 25 bps changing the repo rate at 6.25 % and reserve repo rate at 6%. 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.

Nipun Gaba, Senior Vice President, Fairwealth Group 

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, 25 basis points cut may not be enough to spur the investment cycle, there is definitely more required, to improve the sentiment towards investments in the country and will boost the mid segment housing sales.

Dhiraj Jain, Director, Mahagun Group

This is really good news especially for home loan borrowers with the RBI bringing down the key policy rate by 25 bps in its monetary policy review, signalling lower interest rates. With lower repo rates banks would be able to set the direction and reduce the level of interest rates, which eventually witness the increase of demand for homes in real estate sector.

Prateek Mittal, Executive Director, Sushma Group

The real estate segment is expected to pick up with RBI monetary policy’s rate cut. The repo rate cut of 25 bases points will not only benefit the developers but will also favour the homebuyers. More money available in banks at a lower cost will result in increased purchasing power as there will be a lower EMI burden on the buyers. It will also lighten the liquidity crunch and lower the cost of finance for the developers. Such positive announcement by the RBI was much needed for the realty sector to take off.

LC Mittal, Director, Motia Group

After the Interim budget 2019, RBI monetary has come up with even greater relief to the real estate sector. The repo rate which was kept stagnant from October 2018, has now been reduced by 25 basis points which will ease the pressure off the market and accelerate the investment cycle. Post the implementation of GST & RERA this rate cut is going to help the realty sector flourish.

 

Kushagr Ansal, Director, Ansal Housing

Since last one & half year on every policy review we were expecting the cut in repo rate but finally, the government reduced repo rate by 25 basis point after the interim budget. Post implementation of GST & RERA real estate sector is on the revival path and decreased repo rate will be additional support for the buyers.

 

Ashok Gupta, CMD, Ajnara India

Developers are working hard to bring real estate back on track and Government is also supporting us in every possible way. We believe that the decision to reduce a repo rate by 25 basis point will prove beneficial from a consumption and lending perspective, thereby boosting economic growth. . This was a much awaited announcement for both developers and buyers.

 

Rajesh Goel, MD, RG Group

With the cut in Policy rates by 25 basis points, there are aspirations for the Real Estate Sector to pick up their businesses in the market. This step will surely assist in keeping the marginal cost of fund based lending rates (MCLR) low which means there will be more money available at the banks at a much lesser cost lowering the EMI burden. Though this is a positive progress for the market, but still it needs more to stimulate the investments in the country.

 

Mr. Vikas Bhasin, CMD, Saya Group

It’s a welcome step and was long awaited move this will help to boost the sentiments in the real estate sector. We sincerely hope that both Finance Ministry as well as the RBI asks all the Banks to transfer the benefits to the end consumer, else this move will severely stop short of benefiting the consumer and only help in buffering the bottom lines of the bank.

Dhiraj Bora, General Manager, Corporate Communication, Paramount Group

MPC has changed its stance to neutral and apex bank finally cut interest rates, in line with what the sector was expecting. Now the repo rates are brought down by 25 basis points to 6 per cent from 6.25 per cent, we are assuming the banks would pass on the rate cut in a similar direction. From the point of view of the real estate sector, the lowered interest rates on home loan EMI is likely to give another sign of relief after Interim budget.

Sagar Saxena, Project Head, Spectrum Metro

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.