To spur investment & growth RBI cut interest rate by 0.25 per cent for third time. Real Estate companies are hopeful that a fall in interest rate will somewhat uplift the sector. The decision to cut key interest rate is likely to reduce borrowing cost for both home buyers as well as developers which leads to increase the housing demand. This step of RBI is to seek further cut in interest rates as well as policy reforms for the growth of realty sector because this sector is facing a huge demand slowdown in last few years. Due to this step of RBI there will be surely increase in market momentum in terms of commercial leasing, employment etc.& also help residential market to rise to its earlier level. And this will also boost the residential sales across the market.
According to Mr. Anil Sharma CMD Amrapali Group that fall in rate will uplift the real estate sector. He said buyers were in a wait-and-watch mode to make any investment due to unfavorable market sentiments, low purchasing capacity & prevailing high interest rates & so it would gradually propel growth of the realty sector. He had expressed his views on RBI’s new credit policy in the programme “News Point” at NDTV India.