#reverserepo

With the current unexpected lending rate cut by the RBI by 25 basis points 7.5% repo rate. This rate will certainly help in the revival of the Real Estate sector which had been in coma from past 1 .5 years. Real Estate is one of the most aspirational sectors in India as every individual dreams of having its own home.

This cut in the repo rates will certainly bring a cheer in the investors of the real estate sectors. The rate cut will especially; benefit those who have not been buying a new home because of the higher interest rates in the market.

The real estate industry too has hailed the decision of decrease in repo rate by RBI. They claimed that this will certainly; change the speculative mood of investors towards a positive direction. Markets, too have responded with a cheer to this decision.

The real estate regulatory body CREDAI feels that “there is further scope to ease the credit policy.”

Considering, that the current Union Budget have not made any announcements to directly boost the realty sector, and increasing the service tax from 12.5 % to 14% would adversely affect as it would increase the cost of buying a dream home for the home buyers.

Mr. Subodh Goel, Director Civitech Group of Companies stated that “the rate cut was much needed by the sector in order to improve the buying sentiment amongst the buyers so as to sell off the ready inventory with the developers and improve the overall working of the realty sector.”

He further commented that “banks had not passed on the entire benefit to the home loan takers, after the last cut in the lending rates by the RBI, but with the further decrease in the rates by the RBI, banks should pass on more benefits to the home loan takers.”