Following a cut in GST rates for the realty sector, the repo rate cut of 25 basis points is said to be a major boost to it.
According to Shishir Baijal, Chairman & Managing Director, Knight Frank India, “The real estate sector has been looking forward to such stimuli to boost sales velocity.”
A special committee has been set up by the Reserve Bank of India for analyzing the condition of housing finance securitization markets and proposed measures for its development. The reports by the committee are to be submitted by August.
“The focus to align the Indian housing finance securitization market as well as the secondary market for corporate loans with international best practices as announced on April 4 will essentially deepen these markets and ensure better price discovery,” Khushru Jijina, MD, Piramal Capital, and Housing Finance said.
Parth Mehta, Managing Director, Paradigm Realty, said, “The Monetary Policy Committee (MPC) statement of having a 25bps cut is something the industry was expecting and was needed in order to boost liquidity and investment cycles as few data points like IIP and car sales numbers that came out recently have been timid.”
“One of the major reasons RBI could give a go-ahead to the cut was because the Inflation was in check giving them headroom to accommodate cut. This rate cut shall help the borrowing rates for builders and home loan rates. Along with already lowered GST, it will be a sentiment booster. We also believe that if the inflation continues to be stable then we can expect another rate cut in the next MPC meeting to revive consumer spending and restore economic growth, he added.