Repo rate cut to boost housing demand if banks pass on benefit to customers: Realtors

Real estate industry Thursday said the RBI's decision to cut repo rate would help in revival of housing segment, provided banks pass on the benefit to home buyers.

The RBI lowered the benchmark lending rate by 25 basis points to a nearly nine-year low of 5.75 per cent.

Commenting on the policy, CREDAI President Satish Magar said the rate cut augurs well for the Indian real estate industry and would have a significantly positive impact on industry's revival as well.

He expected that the benefits of lower repo rate would be duly passed on to the borrowers.

CREDAI Chairman Jaxay Shah said: "Repo rate cut is just what the industry is looking forward to accelerate investments...the next step is to ensure that the banks and financial institutions pass on the benefits of lower rates of interest to borrowers".

NAREDCO President Niranjan Hiranandani said the rate cut would "provide momentum to the market, but more needs to be done to address the issue of liquidity".

"We are happy with the rate cut. Buyers who are coming back after the GST rate cut announcement on under-construction and affordable properties would be encouraged further with the reduction in the bank rates," he added.

Sanjay Dutt, the MD of Tata Realty & Infrastructure and Tata Housing, said RBI's decision would definitely prove beneficial for the real estate sector as it paves way for increased investments.

Lauding the decision, JLL CEO & Country Head Ramesh Nair said, "This repo rate cut is likely to have a direct impact on the real estate sector, provided the banks, in turn, transmit the same by a corresponding reduction in lending rates."
Anarock Chairman Anuj Puri said "this rate cut may only send out positive notional signals - its real gain can be realised only if banks pass on the benefits to actual homebuyer borrowers."
Among developers, Mumbai-based Ruparel Realty's Amit Ruparel said: "We urge banks to reciprocate the same by reducing home loan interest rate which will benefit home buyers."
He said, "Now it is the responsibility of banks to pass on the benefits to home buyers."