Kolkata/Chennai: The repo rate cut has generally gone down well among the realty players and sector analysts, but it may not be enough to improve the buyer sentiment in the mid-segment housing market. However, the increased limit in priority sector lending will support affordable housing segment.
“This is a well-timed move as the country prepares for the festive season. The move is expected to improve buying sentiments in the market and provide the much-needed impetus to the real estate sector,” said Sanjay Dutt, MD & CEO, Tata Realty & Infrastructure Ltd.
Surendra Hiranandani, CMD, House of Hiranandani, said, “The real estate sector has been looking forward to such initiatives to boost sales… We hope that the current rate cut would translate into lower EMIs and help soften home loan rates and also boost sales.”
However, Anuj Puri, Chairman, Anarock Property Consultants, felt that a rate cut of 35 bps is insufficient to significantly improve buyer sentiment in the mid-income segment, which still has a staggering unsold inventory of 2.17 lakh units in the top seven cities.
RBI has cumulatively made 110 bps rate cut in the last four policy reviews.
Shishir Baijal, CMD, Knight Frank India, said, “A more substantial cut is the need of the hour for its effective transmission to end users.
“It may not be sufficient to give the required impetus to the stalling consumption numbers. Only up to 35 bps have been seemingly transmitted to end users and with this backdrop, another similar rate revision is not expected to trickle down much.”...