Auto, realty cos expect sales rebound after RBI slashes repo rate

Sector experts and developers said the decision could draw homebuyers back into the market, particularly in the affordable housing segment

The Reserve Bank of India’s (RBI) decision to cut the repo rate by 25 bps to 6 per cent has brought cheer to real-estate and automotive industries, as reduction in borrowing costs will act as a tailwind for the two sectors which have seen moderation in demand in recent months.

 

The real estate industry expects the move to revive the subdued market sentiments amid moderating housing demand. As such, thanks to the rate cut, the industry is likely to attract first-time homebuyers with more affordable EMIs, as well benefit developers with improved liquidity conditions and smoother execution, causing improved cash