Chennai: While the RBI’s repo rate cut is a matter of cheer for homebuyers, the real estate sector is skeptical about banks cutting lending rates, going by the recent experience.
“Today’s rate cut by the RBI is a much-needed response to the subdued demand. Homebuyers will be hoping for cheaper loans from banks now, which will have a direct positive effect on the demand for housing. However, the transmission of this rate cut to the home loan seeker via lower lending rates from the banking system may take some time,” said Kanika Gupta Shori, Co-Founder and COO, Square Yards.
Anuj Puri, Chairman, Anarock Property Consult-ants, wants the apex bank to ensure that the transmission actually happens at the ground level since there has been little evidence of such transmissions in the recent past.
“In the current scenario bereft with rising NPAs and the ongoing NBFC crisis, things look quite bleak at the moment... This rate cut will only have any really significant impact on the housing market if and when banks reduce their lending rates to homebuyers,’ he said....