Reserve Bank of India cut interest rates to boost housing demand: real estate development
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mean:. The real estate industry on Thursday hailed the Reserve Bank of
India's decision to cut key interest rate, saying the move will boost
housing demand and also improve sentiment in the sluggish property
market However, real estate developers and property consultants demanded
that interest rates be further reduced.
Encouraged by softening inflation, the RBI on Thursday decided to cut
the benchmark interest rate by 0.25 per cent to 7.75 percent with a view
to boost growth. "It's a great new year gift. It seems that the Finance
Minister's effort has borne fruit to convince
RBI governor. Given the background of RBI governor, even the small
beginning will be marked as big signs of hopes for the Indian economy,
"DLF group executive director Rajeev Talwar told PTI. The move would
definitely encourage buyers now to invest in
new homes, he added.
Commenting on the development, property consultant
CBRE South Asia chairman and managing director Anshuman Magazine said,
"This decision, early in the year, is a welcome one. Given the current
market situation, this reduction in the base
rate is an important step in improving home buying sentiments. "Mr
Magazine said that this move, hopefully with expected reduction in
mortgage rates, would improve residential sales across the country,
which have been suffering from general slackness in recent times.
Housing sales fell to 1.75 lakh units in the
primary markets of seven major cities in 2014 against nearly 2 lakh
units in the previous year due to demand slowdown, according to recent
JLL India report.
The real estate industry in India on Thursday decided to cut its key interest rate known as the Reserve Bank, said the move will boost demand for housing, but also improve the sentiment of the real estate market.
"This is a great gift for the new year. It seems, trying to convince the finance minister has paid off RBI governor. Given the context of the next RBI governor, even if it is a small start will be marked hope for India's economy large sign "DLF group executive director Raj Chromophtal Preval told PTI.
SOURCE : WEB
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